Pinnacle West Capital Corporation (NYSE:PNW) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Pinnacle West Capital reported US$5.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$5.24 beat expectations, being 2.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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.

View our latest analysis for Pinnacle West Capital

Taking into account the latest results, Pinnacle West Capital's eleven analysts currently expect revenues in 2025 to be US$5.22b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 11% to US$4.53 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$5.17b and earnings per share (EPS) of US$4.53 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$93.42, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Pinnacle West Capital, with the most bullish analyst valuing it at US$110 and the most bearish at US$80.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Pinnacle West Capital's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$93.42, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Pinnacle West Capital. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pinnacle West Capital going out to 2027, 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 shouldn't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.