Pinnacle West Capital Corporation PNW reported adjusted earnings per share of $2.46 in the third quarter of 2017, surpassing the Zacks Consensus Estimate of $2.33 by 5.6%. Quarterly earnings increased 4.7% year over year.The year-over-year improvement was due to new electricity rates that became effective during the quarter and higher electricity usage due to increasing customer base.Total RevenuesIn the quarter under review, total revenues of $1,183.3 million increased from the year-ago figure of $1,166.9 million by 1.4%.Operational HighlightsHigher operations and maintenance expenses adversely impacted earnings by 2 cents per share compared to the prior-year period. The increased expenses were largely due to higher employee benefit costs.Pinnacle West Capital Corporation Price, Consensus and EPS Surprise Pinnacle West Capital Corporation Price, Consensus and EPS Surprise | Pinnacle West Capital Corporation QuoteDespite slightly milder-than-normal overall temperatures, effects of weather variations positively impacted earnings by 2 cents per share compared to the year-ago period.Total operating expenses in the third quarter increased 0.2% to $717.2 million, primarily owing to higher operation and maintenance expenses.In the reported quarter, operating income increased 3.3% year over year to $466.1 million.Interest expenses were up 8.4% to $55.6 million from $51.3 million a year ago.GuidancePinnacle West Capital maintained its 2017 earnings guidance in the range of $4.15 to $4.30 per share.The company initiated 2018 earnings guidance in the range of $4.25 to $4.45 per share.Zacks RankPinnacle West Capital currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer ReleasesDominion Energy Inc. D reported third-quarter 2017 operating earnings of $1.04 per share, beating the Zacks Consensus Estimate by a penny.NextEra Energy, Inc.NEE reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.FirstEnergy Corporation FE reported third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 86 cents by 12.8%.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report NextEra Energy, Inc. (NEE): Free Stock Analysis Report FirstEnergy Corporation (FE): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report To read this article on Zacks.com click here.