Sep 30, 2021

Pinnacle West Q3 2021 Earnings Report

Pinnacle West's Q3 2021 earnings decreased due to milder weather conditions, which were partially offset by strong operational performance and customer growth.

Key Takeaways

Pinnacle West reported a decrease in net income for the third quarter of 2021, primarily due to milder weather compared to the previous year's historic heatwave. This was partially offset by strong operational performance, customer growth, and disciplined cost management.

Lower quarterly revenue was driven by milder weather conditions.

Strong operational performance and increased sales and customer growth helped offset the weather impacts.

The company is pursuing legal challenges following a recent unfavorable rate case decision.

The Arizona Corporation Commission (ACC) voted on the APS 2019 rate case following multiple days of contentious deliberation, resulting in a distinctly unfavorable decision.

Total Revenue
$1.31B
Previous year: $1.25B
+4.3%
EPS
$3
Previous year: $3.07
-2.3%
Customer Growth
2.3%
Previous year: 2.3%
+0.0%
Gross Profit
$648M
Previous year: $664M
-2.4%
Cash and Equivalents
$25.7M
Previous year: $182M
-85.9%
Total Assets
$21.5B
Previous year: $19.8B
+9.0%

Pinnacle West

Pinnacle West

Forward Guidance

Following the recent conclusion of APS’s rate case, the company expects its 2021 full-year ongoing consolidated earnings will be within a range of $5.25 to $5.35 per diluted share on a weather-normalized basis. Looking ahead to 2022, the Company estimates its ongoing consolidated earnings will be within a range of $3.80 to $4.00 per diluted share.