Mar 31, 2021

Pinnacle West Q1 2021 Earnings Report

Pinnacle West's Q1 2021 earnings were reported, showing an increase in net income and EPS compared to the same period last year, driven by weather, higher transmission revenues, and pension credits, despite increased operations and maintenance expenses.

Key Takeaways

Pinnacle West reported a consolidated net income attributable to common shareholders of $35.6 million, or $0.32 per diluted share, for the quarter ended March 31, 2021, compared to $30.0 million, or $0.27 per diluted share, for the same period in 2020. The results were positively impacted by weather, higher transmission revenues, and higher pension credits, offsetting increased operations and maintenance expenses.

Pinnacle West reported Q1 2021 earnings in line with company expectations.

Customer growth was strong at 2.1% for the quarter, reflecting continued growth in Arizona.

The company is well-prepared to deliver reliable service during Arizona's extreme summer temperatures.

First-quarter results were positively impacted by weather, higher transmission revenues, and higher pension and other postretirement non-service credits.

Total Revenue
$696M
Previous year: $662M
+5.2%
EPS
$0.32
Previous year: $0.27
+18.5%
Customer Growth
2.1%
Previous year: 2.2%
-4.5%
Gross Profit
$268M
Previous year: $252M
+6.4%
Cash and Equivalents
$17.2M
Previous year: $63.1M
-72.8%
Total Assets
$20.2B
Previous year: $19B
+6.2%

Pinnacle West

Pinnacle West

Forward Guidance

The company is projecting peak demand of 7,521 megawatts this year – lower than last summer’s record-breaking 7,660 megawatts, but 406 megawatts higher than 2019.

Positive Outlook

  • Resource planning
  • Sufficient reserve margins
  • Customer partnerships to manage peak demand
  • Fire mitigation
  • Operational preparedness