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Pinnacle West Set to Announce Q4 Loss Amid EPS Growth Outlook

Pinnacle West is expected to report a Q4 loss. However, fiscal 2024 earnings projections suggest a 16.3% EPS growth. This sets a mixed sentiment for investors as they await the official release.

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AI Rating:   6

Overview of Performance Expectations

Pinnacle West Capital Corporation (PNW) is anticipated to experience a loss of $0.15 per share for the fourth quarter. Despite this negative outlook for Q4, there's a notable positive trend, as analysts project an EPS of $5.13 for fiscal 2024, which represents a significant increase of 16.3% from the prior year’s $4.41. This suggests that while current quarterly performance may be disappointing, there is a recovery and growth anticipated in the upcoming fiscal year.

Market Performance

In the past year, PNW's stock has risen by 24%, although this is less than the S&P 500's 26.5% growth and the Utilities Select Sector's 27.7% increase. Hence, while the stock has made gains, it is underperforming compared to broader market indices. Investors might consider this information when assessing the relative attractiveness of PNW shares versus other investment opportunities in the sector.

Analyst Ratings and Market Sentiment

The consensus among analysts seems moderately optimistic with a “Moderate Buy” rating. This includes seven “Strong Buy” ratings and eight “Hold” recommendations among the 15 analysts covering PNW. Furthermore, an average price target of $93.78 indicates an upside potential of 8.2% from its current levels, which may attract investors looking for growth potential in the stock.

Recent Performance Impact

Pinnacle West's stock saw a rise of 3.9% on Nov. 6 following its Q3 earnings results, which surpassed market expectations due to increased energy consumption driven by an exceptionally hot summer. This performance demonstrates the company's operational effectiveness during high-demand periods, potentially reassuring investors of its reliability and capacity for revenue growth during favorable conditions.

Stocks:  PNW