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Edison International (EIX) Tops Q1 Earnings, Lags Revenues

Zacks Equity Research

Edison International EIX reported first-quarter 2017 adjusted earnings per share (EPS) of $1.10 from continuing operations which surpassed the Zacks Consensus Estimate of 89 cents by 23.6%. Reported earnings were also up 29.4% from 85 cents earned a year ago.
Total Revenue

Edison International's first-quarter revenues came in at $2,463 million, lagging the Zacks Consensus Estimate of $2,498 million by 1.4%. However, quarterly revenues inched up 0.9% from the year-ago tally of $2,440 million.

Operational Highlights

In the reported quarter, total operating expenses declined 0.4% to $1,984 million, mainly on account of lower purchased power and fuel (1.3%) expenses, as well as operation and maintenance expenses (5.2%).

On the other hand, Property and other taxes increased 8.7%, while depreciation, decommissioning and amortization expenses rose 4.6%.

Operating income was up 6.9% to $479 million in the reported quarter.

Interest expenses were $152 million, higher than $140 million reported in the first quarter of 2016.

Segment Results

Southern California Edison’s (SCE) first-quarter earnings were $1.07 per share, as compared with the year-ago earnings of 90 cents. Earnings in the reported quarter improved primarily on account of an increase in revenues from the escalation mechanism as set forth in the 2015 General Rate Case (GRC) and lower operations and maintenance expenses, and higher income tax benefits, which were again partially offset by higher net financing costs related to SCE's capital spending program.

Edison International’s Parent and Other segment posted first-quarter 2017 core earnings of 4 cents per share, as against the year-ago loss of 4 cents. The improvement reflects higher income tax benefits related to stock option exercises.

Edison International Price, Consensus and EPS Surprise


Edison International Price, Consensus and EPS Surprise | Edison International Quote

Financial Update

As of Mar 31, 2017, cash and cash equivalents were $150 million, reflecting an increase from $96 million as of Dec 31, 2016. Long-term debt was $11.66 billion, higher than the 2016-end level of $10.18 billion.

Net cash from operating activities during the first quarter was $879 million, compared with $855 million in the year-ago quarter. Total capital expenditure amounted to $939 million during the first quarter, down from $951 million a year ago.


The company reiterated its earnings guidance for 2017. Edison International expects core earnings in the band of $4.04 to $4.24 per share for 2017.

Peer Releases

DTE Energy Company DTE reported first-quarter 2017 operating earnings per share of $1.79, which beat the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion, which surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%.

Entergy Corporation ETR reported first-quarter 2017 operational earnings of 99 cents per share, lagging the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million beat the Zacks Consensus Estimate of $2,566 million by 0.9%.

NextEra Energy, Inc. NEE reported first-quarter 2017 adjusted EPS of $1.75, beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, beating the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.

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.

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