Edison International (EIX) Q3 Earnings Miss, Revenues Fall Y/Y
Edison International EIX reported third-quarter 2023 adjusted earnings of $1.38 per share, which missed the Zacks Consensus Estimate of $1.46 by 5.5%. The bottom line also decreased 6.8% from $1.48 in the year-ago quarter.
The company recorded GAAP earnings of 40 cents per share against a reported loss of 33 cents in the third quarter of 2022.
Total Revenues
Edison International's third-quarter revenues totaled $4,702 million, which missed the Zacks Consensus Estimate of $5,389.4 million by 12.8%. Moreover, the top line declined 10.1% from the year-ago quarter’s figure of $5,228 million.
Edison International Price, Consensus and EPS Surprise
Edison International price-consensus-eps-surprise-chart | Edison International Quote
Operational Highlights
In the reported quarter, total operating expenses decreased 20.1% year over year to $4,210 million.
Purchased power and fuel costs decreased 20%, and depreciation and amortization expenses declined 9.9% during the same time frame.
Operation and maintenance costs decreased 9.9% year over year, whereas property and other taxes increased 8.6%.
Operating income amounted to $492 million in the third quarter of 2023 against an operating loss of $44 million in the year-ago quarter.
Segmental Results
Southern California Edison’s (“SCE”) third-quarter adjusted earnings were $1.60 per share compared with $1.63 in the year-ago quarter. The decrease can be attributed to higher interest expense and a true-up recorded in the third quarter of 2022 related to the Customer Service RePlatform decision.
Edison International Parent and Other incurred a loss of 22 cents per share compared with the year-ago quarter’s reported loss of 15 cents. The wider loss was on account of higher interest expenses.
Financial Update
As of Sep 30, 2023, Edison International's cash and cash equivalents amounted to $446 million compared with $914 million as of Dec 31, 2022.
The long-term debt was $29.53 billion as of Sep 30, 2023, higher than the 2022-end level of $27.03 billion.
Net cash inflow from operating activities in the first nine months of 2023 was $2,546 million compared with $2,112 million in the prior-year period.
Total capital expenditures were $3,991 million as of Sep 30, 2023, down from $4,206 million in the year-ago period.
2023 Guidance
The company reiterated its 2023 guidance. EIX still expects earnings in the range of $4.55-$4.85 per share.
The Zacks Consensus Estimate for earnings is currently pegged at $4.71 per share, just above the midpoint of the company’s guided range.
Zacks Rank
Edison International currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Release
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line, however, improved 6.7% year over year.
PG&E Corporation’s PCG adjusted earnings per share of 24 cents in the third quarter lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line also decreased 17.2% from the year-ago quarter’s reported figure.
PCG recorded total revenues of $5,888 million compared with $5,394 million in the year-ago period. The figure missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
Public Service Enterprise Group Incorporated PEG, or PSEG, reported third-quarter 2023 adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 13.3%. However, the figure deteriorated 1.2% year over year.
Operating revenues totaled $2,456 million in the third quarter, which beat the Zacks Consensus Estimate of $2,423.5 million by 1.3%. The top line also increased 8.1% from the year-ago quarter’s figure of $2,076 million.
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