Edison International (EIX) Reports Mixed Fourth-Quarter and Full-Year 2023 Results
Fourth-Quarter Net Income: $378 million, or $0.99 per share, down from $415 million, or $1.09 per share in the previous year.
Full-Year Net Income: $1,197 million, or $3.12 per share, up from $612 million, or $1.61 per share in 2022.
Core Earnings: Fourth-quarter core earnings increased to $490 million, or $1.28 per share, from $437 million, or $1.15 per share year-over-year.
Dividend: Declared a quarterly common stock dividend of $0.78 per share, payable on April 30, 2024.
2024 Earnings Guidance: EIX provided an earnings guidance range for 2024 with a low of $4.75 and a high of $5.05 per basic EPS.
On February 22, 2024, Edison International (NYSE:EIX) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, a significant player in the electric utility sector, is the parent company of Southern California Edison, which delivers electricity to 15 million people across Southern, Central, and Coastal California, and Edison Energy LLC, a global energy advisory firm.
Despite a decrease in fourth-quarter net income year-over-year, Edison International saw an increase in core earnings for the same period, primarily due to higher revenue from the escalation mechanism set forth in the 2021 General Rate Case (GRC) final decision and lower operation and maintenance expenses, partially offset by higher interest expense. The company's full-year net income significantly improved compared to 2022, mainly attributed to similar factors affecting the quarterly performance.
Edison International's President and CEO, Pedro J. Pizarro, commented on the results, stating,
Delivering core EPS above the midpoint of our guidance range demonstrates our ability to successfully manage variability in the business,"
and highlighted the company's commitment to delivering on EPS growth targets with a 5.8% annual dividend increase.
The company's financial achievements, particularly the increase in core earnings, are crucial for Edison International and the utilities industry, which is often characterized by stable but modest growth. These achievements reflect the company's ability to navigate regulatory environments and manage costs effectively while investing in infrastructure and safety programs, such as the covered conductor program mentioned by Pizarro.
Edison International's balance sheet and income statement reflect the complexities of the utilities industry, with significant operating revenue of $16,338 million for the year ended December 31, 2023, and operating expenses totaling $13,711 million. The company's operating income stood at $2,627 million, with net income attributable to Edison International common shareholders at $1,197 million. The earnings per share (EPS) figures are key metrics for investors, indicating the company's profitability on a per-share basis, which is essential for assessing the value and performance of the company's stock.
Looking ahead, Edison International provided earnings guidance for 2024, with an EPS range of $4.75 to $5.05, suggesting a positive outlook for the upcoming year. The company's forward-looking statements, however, are subject to various risks and uncertainties, which investors should consider alongside the financial data provided.
Overall, Edison International's mixed fourth-quarter results, coupled with a stronger full-year performance, illustrate the company's resilience in a challenging operational environment. The company's focus on infrastructure improvements and cost management, along with its guidance for the future, offer insights into its strategic direction and potential for continued growth within the regulated utilities sector.
Explore the complete 8-K earnings release (here) from Edison International for further details.
This article first appeared on GuruFocus.
