Company Reports

We are reaffirming our $77 fair value estimate for Pinnacle West after the company reported earning $0.15 per share during the first quarter, up from a $0.03 loss during the first quarter of 2023. Pinnacle West had no earnings in the quarter after excluding a one-time $0.15 per share gain on the sale of Bright Canyon Energy.

Until 2021, Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases as customer and energy usage growth in Arizona outpaced most other utilities. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.

Data center electricity demand growth is a key source of upside for US utilities that we don't think the market appreciates. We consider the sector 9% undervalued as of April 8 in part because we expect electricity demand growth to top market expectations, requiring substantial energy infrastructure investment and boosting utilities' earnings growth.

We are reaffirming our $77 fair value estimate for Pinnacle West after the company reported earning $4.41 per share in 2023 and received a final decision in its 2022 rate review. Weather-adjusted earnings and the rate review outcome were in line with our outlook. We are reaffirming our narrow moat rating.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after reviewing a recent Arizona Corporation Commission ruling that set new electric rates for Tucson-based utility UNS Electric, a subsidiary of Fortis. We are reaffirming our narrow moat rating.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

Until 2021, Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases as customer and energy usage growth in Arizona outpaced most other utilities. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after the company reported earning $3.50 per share in the third quarter, up from $2.88 in the third quarter of 2022. We are reaffirming our narrow moat rating.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after the company reported earning $0.94 per share in the second quarter, down from $1.45 in the second quarter of 2022. We are reaffirming our narrow moat rating.

Until 2021, Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases as customer and energy usage growth in Arizona outpaced most other utilities. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.

Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases for several years because of fast-growing customer and energy usage in Arizona. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after the company announced a $0.03 per share loss in the first quarter, down from a $0.15 profit in the first quarter of 2022. Despite this drop in earnings during the quarter, Pinnacle West remains on track to meet our full-year earnings expectations. We are reaffirming our narrow moat and stable moat trend ratings.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after the company announced earning $4.26 per share in full-year 2022, down from $5.47 in 2021. This was in line with our expectations. We are reaffirming our narrow moat and stable moat trend ratings.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after analyzing how election results in Arizona might affect subsidiary Arizona Public Service. We are reaffirming our narrow moat and stable moat trend ratings.

Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases for several years because of fast-growing customer and energy usage in Arizona. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.

We are reaffirming our outlook for Pinnacle West after the company reported earning $2.88 per share in the third quarter, down from $3.00 per share in the third quarter of 2021 despite exceptionally hot weather that was a $0.23 per-share benefit year over year. We are reaffirming our narrow moat and stable moat trend ratings.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

Our initial analysis of the U.S. Inflation Reduction Act that President Joe Biden plans to sign on Aug. 16 has led us to reaffirm or make slight increases to our fair value estimates for U.S. utilities. We are reaffirming our moat and moat trend ratings.

We are reaffirming our $77 per share fair value estimate for Pinnacle West after the company reported earning $1.45 per share in the second quarter, down from $1.91 per share in the second quarter of 2021. We are reaffirming our narrow moat and stable moat trend ratings.