Edison International (EIX) Reports Q3 2023 Earnings: Net Income of $155 Million
Edison International (NYSE:EIX) reported Q3 2023 net income of $155 million, compared to a net loss of $128 million in Q3 2022.
Q3 2023 core earnings were $531 million, compared to $564 million in Q3 2022.
The company reaffirmed its 2023 core EPS guidance range.
A $475 million increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events was recorded.
Edison International (NYSE:EIX) released its Q3 2023 earnings report on November 1, 2023. The company reported a net income of $155 million, or $0.40 per share, a significant improvement from a net loss of $128 million, or ($0.33) per share, in the same period last year. As adjusted, the company's Q3 core earnings were $531 million, or $1.38 per share, compared to $564 million, or $1.48 per share, in Q3 2022.
Financial Performance and Challenges
Edison International (NYSE:EIX)'s Southern California Edisons Q3 core earnings per share (EPS) decreased year over year, primarily due to higher interest expense and a true-up recorded in Q3 of last year related to the Customer Service Re-Platform (CSRP) decision. This reduction was partially offset by higher revenue from the escalation mechanism set forth in the 2021 General Rate Case final decision.
The company's Parent and Others Q3 core loss per share increased year over year, primarily due to higher interest expense. Despite these challenges, the company reaffirmed its 2023 core EPS guidance range.
We are pleased with our performance year to date and, combined with the outlook for the fourth quarter, we are confident in reaffirming our 2023 core EPS guidance range, said Pedro J. Pizarro, president and CEO of Edison International.
Wildfire Mitigation and Loss Estimates
Edison International (NYSE:EIX) has made significant progress in wildfire mitigation, reducing its risk of losses from catastrophic wildfires by 85% since 2018. However, the company recorded a $475 million increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events as of September 30, 2023.
2023 Earnings Guidance
The company reaffirmed its earnings guidance range for 2023, with a low of $4.55 and a high of $4.85 for EIX Core EPS. This guidance incorporates non-core items recorded for the nine months ended September 30, 2023.
Financial Tables Summary
The company's operating revenue for the three months ended September 30, 2023, was $4,702 million, compared to $5,228 million for the same period in 2022. The total operating expenses for the same period were $4,210 million, resulting in an operating income of $492 million. The company's net income attributable to Edison International common shareholders was $155 million, resulting in a basic earnings per common share of $0.40.
For the nine months ended September 30, 2023, the company's operating revenue was $12,632 million, with total operating expenses of $10,796 million, resulting in an operating income of $1,836 million. The net income attributable to Edison International common shareholders was $819 million, resulting in a basic earnings per common share of $2.14.
Explore the complete 8-K earnings release (here) from Edison International for further details.
This article first appeared on GuruFocus.
