Will Edison International (EIX) Beat Estimates in Q3 Earnings?
Edison International EIX is scheduled to report third-quarter 2022 results on Nov 1, after market close.
In the last reported quarter, the company delivered an earnings surprise of 4.44%. Edison International has a trailing four-quarter earnings surprise of 13.88%, on average.
Factors to Note
The company’s service territories mostly witnessed warmer-than-normal temperatures along with extremely dry weather conditions in the third quarter of 2022, which is likely to have boosted the demand for electricity for cooling purposes. This, in turn, might have contributed to EIX’s top line in the soon-to-be-reported quarter.
Additionally, the favorable impact of the general rate case Track 3 on the company’s revenues is likely to be reflected in the third-quarter results.
Edison International Price and EPS Surprise
Edison International price-eps-surprise | Edison International Quote
However, extreme dry conditions in some of its service territories resulted in drought-like conditions, causing wildfire events. Also, Tropical Storm Kay impacted Edison International’s service area with gusty winds and heavy rains, causing mudslides. This might have disrupted the smooth flow of electricity to its customers, thereby dampening the revenues of the company in the third quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $4.99 billion, suggesting a decline of 5.7% from the year-ago quarter.
The wildfire event as well as tropical storm Kay, as mentioned above, might have caused infrastructural damage, thus increasing the company’s restore and repair expenses. This might have dented the earnings of the company in the third quarter of 2022.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.55 per share, indicating a decline of 8.3% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Edison International this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The company’s Earnings ESP is +6.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three utilities you may want to consider as these also have the right combination of elements to post an earnings beat this season:
NextEra Energy NEE has an Earnings ESP of +0.63% and a Zacks Rank #2. The Zacks Consensus Estimate for NextEra Energy’s third-quarter revenues is pegged at $6.35 billion, suggesting growth of 45.4% from the year-ago quarter.
The Zacks Consensus Estimate for NEE’s third-quarter earnings is pegged at 79 cents per share, indicating growth of 5.3% from the prior-year reported figure.
Ameren AEE has an Earnings ESP of +1.75% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter earnings is pegged at $1.71 per share, indicating an improvement of 3.6% from the prior-year reported figure.
Ameren boasts a long-term earnings growth rate of 7.2%. The Zacks Consensus Estimate for AEE’s third-quarter sales is pegged at $1.90 billion, suggesting a 5% increase from the prior-year reported figure.
Pinnacle West Capital PNW has an Earnings ESP of +1.66% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings, pegged at $2.62 per share, implies a decline of 12.7% from the prior-year quarter’s reported figure.
PNW has a four-quarter earnings surprise of 115.48%. The Zacks Consensus Estimate for Pinnacle’s third-quarter sales suggests a growth rate of 0.6% from the prior-year quarter’s tally.
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Ameren Corporation (AEE) : Free Stock Analysis Report
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