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Mar 31, 2020
Pinnacle West Q1 2020 Earnings Report
Pinnacle West's Q1 2020 earnings were reported with net income attributable to common shareholders increasing due to cost management, despite revenue declines.
Key Takeaways
Pinnacle West reported a net income attributable to common shareholders of $30.0 million, or $0.27 per diluted share, for Q1 2020, compared to $17.9 million, or $0.16 per diluted share, for the same period in 2019. The results were positively impacted by cost management, which helped offset revenue declines. Customer growth was 2.2% during the quarter.
Net income attributable to common shareholders increased to $30.0 million, or $0.27 per diluted share.
Revenue declines were offset by reductions in operations and maintenance expenses.
Customer growth was a solid 2.2% as Arizona’s economy continued to expand pre-pandemic.
Company committed more than $8 million to assist customers and communities affected by the impacts of COVID-19.
Pinnacle West
Pinnacle West
Forward Guidance
The company continues to believe its 2020 consolidated earnings guidance of $4.75 to $4.95 per diluted share is still achievable, assuming the impacts from COVID-19 dissipate by the end of June and customer and sales growth resume once the economy normalizes. The company will continue its focus on managing costs and utilizing Lean principles to help mitigate any impacts of the pandemic.
Positive Outlook
- 2020 consolidated earnings guidance of $4.75 to $4.95 per diluted share is still achievable.
- Impacts from COVID-19 are expected to dissipate by the end of June.
- Customer and sales growth are expected to resume once the economy normalizes.
- Company will continue its focus on managing costs.
- Lean principles will be utilized to help mitigate any impacts of the pandemic.
Challenges Ahead
- Duration and longer-term impacts of the coronavirus pandemic are uncertain.
- Demand for energy may be affected by the pandemic.
- Economic growth may be affected by the pandemic.
- Supply chain may be affected by the pandemic.
- Capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, and cash flows may be affected by the pandemic.