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Edison International (EIX) Tops Q4 Earnings, Offers '17 View

Zacks Equity Research

Edison International EIX reported fourth-quarter 2016 results, wherein adjusted earnings per share (EPS) of $1.01 from continuing operations surpassed the Zacks Consensus Estimate of 96 cents by 5.2%. Reported earnings were also up 14.8% from 88 cents earned a year ago.



For 2016, the company reported adjusted EPS of $3.94, which also exceeded the Zacks Consensus Estimate of $3.91 by 0.8%.

Total Revenue

Edison International's fourth-quarter revenues came in at $2,884 million, lagging the Zacks Consensus Estimate of $3,048 million by 5.4%. However, quarterly revenues improved a solid 23.2% from the year-ago tally of $2,341 million.

For 2016, the company reported revenues of $11.87 billion, which also missed the Zacks Consensus Estimate of $11.91 billion.

Operational Highlights

In the reported quarter, total operating expenses increased 15.8% to $2,318 million mainly on account of higher purchased power and fuel ( up 53.9%) expenses, as well as depreciation, decommissioning and amortization  expenses (7.9%).

On the other hand, Property and other taxes increased 3.7%, while operation and maintenance expenses dropped 6.1%.

Operating income was up 66.5% to $566 million in the reported quarter.

Interest expenses were $150 million, higher than $136 million reported in the fourth quarter of 2015.

Edison International Price, Consensus and EPS Surprise


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

Segment Results

Southern California Edison’s (“SCE”) fourth-quarter earnings were $1.04 per share, as against the year-ago loss of 25 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, which was again partially offset by higher net financing costs and tax expenses.

Edison International Parent and Other segment incurred fourth-quarter 2016 core loss of 2 cents per share, as against the year-ago earnings of 3 cents. The core losses reflected lower revenues from Edison Capital's affordable housing investment portfolio, partially offset by lower corporate expenses.

Financial Update

As of Dec 31, 2016, cash and cash equivalents were $96 million, down from $161 million as of Dec 31, 2015. Long-term debt was $10.16 billion, lower than the 2015-end level of $10.88 billion.

Net cash from operating activities during 2016 was $3,256 million, compared with $4,509 million in 2015. Total capital expenditure amounted to $3,734 million during 2016, down from $4,225 million in 2015.


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

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.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating EPS of 67 cents, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted EPS of $1.21, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

PG&E Corporation’s PCG adjusted operating earnings per share of $1.33 in the fourth quarter of 2016 surpassed the Zacks Consensus Estimate of $1.29 by 3.1%. Earnings were also up 166% from 50 cents reported in the year-ago quarter.

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