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Edison International's (EIX) Q1 Earnings Miss, Revenues Beat

Zacks Equity Research

Edison International EIX reported first-quarter 2019 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 88 cents by 28.4%. The bottom line also decreased 21.3% from 80 cents registered in the year-ago quarter.


Excluding adjustments, quarterly earnings came in at 85 cents per share from continuing operations compared with 67 cents in first-quarter 2018.


Total Revenues


Edison International's first-quarter revenues came in at $2.82 billion, surpassing the Zacks Consensus Estimate of $2.65 billion by 6.6%. Moreover, the top line increased 10.1% from the year-ago quarter’s $2.56 billion.


Operational Highlights


In the reported quarter, total operating expenses increased 10.7% year over year, to $2,472 million. Operation and maintenance costs increased 30.7% year over year, whereas purchased power and fuel costs rose 8.5%. Depreciation and amortization expenses also increased 3.9%.


Edison International registered an operating income of $352 million in the first quarter compared to with the $330-million operating income registered in the year-ago quarter.


Interest expenses were $194 million, higher than $170 million recorded in the prior-year quarter.


Segment Results


Southern California Edison’s (SCE) first-quarter earnings were 90 cents per share compared with 88 cents a year ago. The upside resulted from the income tax benefits related to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019.


The Parent and Other segment incurred a loss of 5 cents per share in the quarter under review compared with the year-ago quarter’s loss of 21 cents. The decrease in core losses was mainly due to lower corporate expenses and decreased losses at the competitive businesses under Edison Energy Group.


Edison International Price, Consensus and EPS Surprise

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

Financial Update

As of Mar 31, 2019, cash and cash equivalents were $328 million compared with $144 million as onf Dec 31, 2018. Long-term debt amounted to $15.68 billion, higher than the 2018-end level of $14.63 billion.

Net cash from operating activities during the first three months of 2019 was $210 million compared with $859 million in the prior year quarter. Total capital expenditures summed $1,074 million at the end of the first quarter, down from $1,137 million a year ago.


Zacks Rank


Edison International currently carries a Zacks Rank #4 (Sell). 


Recent Utility Releases


FirstEnergy Corporation FE, which carries a Zacks Rank #3 (Hold), delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


NextEra Energy, Inc. NEE, which carries a Zacks Rank #2 (Buy), reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.


DTE Energy Company DTE, which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.


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