Pinnacle West Capital Corporation (PNW), headquartered in Phoenix, Arizona, is a leading utility holding company primarily providing electricity to customers through its subsidiary, Arizona Public Service. With a market cap of $9.9 billion, Pinnacle West focuses on sustainable energy and reliable power delivery across Arizona. The company is set to announce its Q3 earnings before the market opens on Wednesday, Nov. 6.

Ahead of the event, analysts expect PNW to report a profit of $3.14 per share, down 10.3% from $3.50 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in the last four quarters. 

Its adjusted earnings of $1.76 per share for the last quarter surpassed the consensus estimate by 34.4%. Favorable weather, increased customer demand, higher revenues, and effective cost management drove Pinnacle West's quarterly solid performance.

For fiscal 2024, analysts expect PNW to report an EPS of $4.77, up 8.2% from $4.41 in fiscal 2023.  

PNW stock is up 21.7% YTD, underperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the Utilities Select Sector SPDR Fund's (XLU) 28.9% gain over the same time frame.

Shares of Pinnacle West Capital gained 2.9% on Aug. 1 after the utility firm unveiled its Q2 earnings release, reporting a revenue of $1.31 billion, which topped Wall Street’s projections by 8.4%. The company experienced gains in the quarter due to warmer-than-usual weather, intense customer usage, and overall growth. 

The consensus opinion on PNW stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 13 analysts covering the stock, six advise a “Strong Buy” rating, and seven advise “Hold.”

PNW's average analyst price target is $89.73, suggesting a potential upside of 2.6% from the current levels.

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