Pinnacle West reports Q1 EPS 15c, consensus 0c

Reports Q 1 revenue $952M, consensus $981.82M.The improved first-quarter results reflect the impact of new retail base rates which took effect March 8, 2024; increased customer growth and usage; higher revenue resulting from Arizona Public Service lost Fixed Cost Recovery adjustor mechanism and a surcharge resulting from the outcome of the utility’s 2019 Rate Case appeal; and higher other income largely due to the sale of a former subsidiary. These positive factors were partially offset by higher depreciation and amortization expense primarily due to increased plant in service and intangible assets; higher interest charges, net of AFUDC; the effects of weather; and higher operations and maintenance expense. “The first quarter proved to be a strong start to our year and continued to build on the momentum of a growing and diverse customer base,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner, citing 1.8% year-over-year customer growth and weather-normalized sales growth of 5.9%. “With Arizona’s population expected to continue growing faster than the national average, it’s clear that people view Arizona as an attractive place to live and do business.”