Pinnacle West Capital Q1 Profit Declines, Yet Tops Estimates; Backs FY Outlook

(RTTNews) - Pinnacle West Capital Corp. (PNW) Friday reported a lower first-quarter profit, hurt mainly by unfavorable weather. Earnings per share beat analysts' expectations, while revenues missed view. The provider of retail and wholesale electric services also affirmed its full-year 2014 earnings guidance.

Chairman, President and Chief Executive Officer Don Brandt said, "The story for the first quarter was weather. Above-normal winter temperatures - combined with winter temperatures below historical averages a year ago - negatively impacted our financial results."

For the first quarter, net income attributable to shareholders declined to $15.77 million or $0.14 per share from $24.44 million or $0.22 per share in the prior year.

On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.13 for the quarter. Analysts' estimates typically exclude one-time items.

According to the company, milder-than-normal weather decreased earnings by $0.13 per share, and lower transmission revenue reduced earnings by $0.03 per share.

Operating revenues for the period was almost in line at $686.25 million compared to $686.65 million a year ago, while analysts estimated quarterly revenues of $695.78 million.

Total operating expenses advanced to $611.08 million from $599.73 million in the preceding year.

For full year 2014, the firm still expects on-going consolidated earnings to be in the range of $3.60 to $3.75 per share. Analysts project annual earnings of $3.70 per share.

The company said its longer-term goal is to achieve a consolidated earned return on average common equity of at least 9.5 percent annually through 2015. PNW is currently trading at $56.54, up 1.05 percent.