Pinnacle West Capital Corporation (NYSE:PNW) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates
Pinnacle West Capital Corporation (NYSE:PNW) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.8% to hit US$2.0b. Statutory earnings per share (EPS) came in at US$3.49, some 3.8% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pinnacle West Capital after the latest results.
After the latest results, the 14 analysts covering Pinnacle West Capital are now predicting revenues of US$5.93b in 2027. If met, this would reflect a modest 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.8% to US$5.61. Before this earnings report, the analysts had been forecasting revenues of US$5.94b and earnings per share (EPS) of US$5.61 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Pinnacle West Capital
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$105. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Pinnacle West Capital at US$120 per share, while the most bearish prices it at US$89.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Pinnacle West Capital's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Pinnacle West Capital is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pinnacle West Capital's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$105, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pinnacle West Capital going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Pinnacle West Capital (1 doesn't sit too well with us!) that you should be aware of.
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