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Sep 30, 2024
Pinnacle West Q3 2024 Earnings Report
Pinnacle West's Q3 results slightly decreased due to higher expenses, partially offset by new customer rates and weather effects.
Key Takeaways
Pinnacle West reported a slight decrease in net income for Q3 2024 compared to the previous year, primarily due to increased expenses. However, record-setting summer heat drove increased customer sales and usage, contributing to strong financial results.
Experienced record-setting summer heat that drove an increase in customer sales and usage.
Operating performance and reliability remained strong for customers.
Addressed monsoon outages and restored power using a creative approach.
Adjusted 2024 consolidated earnings guidance upward to a range of $5.00 to $5.20 per diluted share.
Pinnacle West
Pinnacle West
Forward Guidance
The company is adjusting its 2024 consolidated earnings guidance upward to a range of $5.00 to $5.20 per diluted share. Looking forward, the Company estimates its 2025 consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis.
Positive Outlook
- Positive impact of weather
- Customer growth
- Sales growth through the first three quarters of the year
- Adjusted 2024 consolidated earnings guidance upward to a range of $5.00 to $5.20 per diluted share
- Estimates its 2025 consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis.
Challenges Ahead
- Higher than previously forecasted operations and maintenance expenses
- Uncertainties associated with the current and future economic environment
- Volatile fuel and purchased power costs
- Potential shortfalls in insurance coverage
- Restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders.