Sep 30, 2020

Pinnacle West Q3 2020 Earnings Report

Pinnacle West's earnings improved due to record summer heat and strong customer growth.

Key Takeaways

Pinnacle West reported a consolidated net income attributable to common shareholders of $346.4 million, or $3.07 per diluted share, for the third quarter of 2020. This compares to $312.3 million, or $2.77 per share, for the same period last year. The increase was primarily driven by hotter-than-normal weather and strong customer growth of 2.3%.

Record summer heat drove quarter-over-quarter earnings improvement.

Strong customer growth of 2.3% underscores Arizona’s expanding economy.

Operating performance and reliability remained strong.

The company increased its 2020 consolidated earnings guidance to $4.95 to $5.15 per diluted share.

Total Revenue
$1.25B
Previous year: $1.19B
+5.3%
EPS
$3.07
Previous year: $2.77
+10.8%
Customer Growth
2.3%
0
Gross Profit
$664M
Previous year: $607M
+9.4%
Cash and Equivalents
$182M
Previous year: $29.9M
+509.4%
Total Assets
$19.8B
Previous year: $18.4B
+7.5%

Pinnacle West

Pinnacle West

Forward Guidance

Given the impacts from significantly above-average weather year to date, the company increased its 2020 consolidated earnings guidance to $4.95 to $5.15 per diluted share from a previously disclosed range of $4.75 to $4.95 per share.