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Edison International's (EIX) Q4 Earnings Miss, Revenues Beat

Zacks Equity Research
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Edison International EIX reported fourth-quarter 2018 adjusted earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.00 by 6%. The bottom line also decreased 14.5% from $1.10 registered in the year-ago quarter.

Excluding adjustments, quarterly earnings came in at $4.49 per share from continuing operations compared with $1.67 in fourth-quarter 2017.

For 2018, the company’s adjusted earnings of $4.15 per share lagged the Zacks Consensus Estimate of $4.16 by a penny. The reported figure also decreased 7.8% from $4.50 in the prior year.

Total Revenues

Edison International's fourth-quarter revenues came in at $3.01 billion, surpassing the Zacks Consensus Estimate of $2.90 billion by 3.8%. However, the top line declined 6.6% from the year-ago quarter’s $3.22 billion.

For 2018, the company’s revenues totaled $12.66 million, which missed the Zacks Consensus Estimate of $12.74 billion by 0.6% but improved 2.7% from the year-ago quarter’s $12.32 billion.

Operational Highlights

In the reported quarter, total operating expenses increased 55% to $5,050 million mainly on account of wildfire-related costs, which was absent in the prior-year quarter. Operation and maintenance costs decreased 10.3% year over year, while purchased power and fuel costs dropped 6.1%. Depreciation and amortization expenses also declined 5.1%.

Edison International incurred an operating loss of $2,041 million compared with a loss of $38 million incurred in the year-ago quarter.

Interest expenses were $196 million, higher than $166 million recorded in the prior-year quarter.

Segment Results

Southern California Edison’s (SCE) fourth-quarter earnings were $4.38 per share compared with 33 cents a year ago. The upside resulted from the impact of the July 2017 cost of capital decision on GRC revenues, increased operation and maintenance expenses related to vegetation management and higher net financing costs.

The Parent and Other segment incurred a loss of 11 cents per share in the quarter under review compared with the year-ago loss of $1.34. The improvement can be attributed to the absence of a $433 million write-down from the re-measurement of deferred taxes as a result of the Tax Reform recorded in 2017.

Financial Update

As of Dec 31, 2018, cash and cash equivalents were $144 million compared with $1,091 million as of Dec 31, 2017. Long-term debt amounted to $14.63 billion, higher than the 2017-end level of $11.64 billion.

Net cash from operating activities during 2018 was $3,177 million compared with $3,597 million in the prior year. Total capital expenditures summed $4,509 million at 2018 end, up from $3,844 million a year ago.

Zacks Rank

Edison International carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

DTE Energy Company DTE reported fourth-quarter 2018 operating earnings per share (EPS) of 91 cents, which missed the Zacks Consensus Estimate of 92 cents by a penny.

American Electric Power Co., Inc. AEP reported fourth-quarter 2018 operating earnings per share (EPS) of 72 cents, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. NEE reported fourth-quarter 2018 adjusted earnings of $1.49 per share, which fell short of the Zacks Consensus Estimate of $1.51 by 1.3%.

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