Post Earnings Coverage as Edison International's Quarterly Revenue Soared 23%
Upcoming AWS Coverage on DTE Energy Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 9, 2017 / Active Wall St. announces its post-earnings coverage on Edison International (NYSE: EIX). The Company reported its fourth quarter and fiscal 2016 financial results on February 21, 2017. The electric power provider exceeded earnings expectations. Register with us now for your free membership at:
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One of Edison International's competitors within the Electric Utilities space, DTE Energy Co. (NYSE: DTE), reported solid 2016 financial results on February 09, 2017. AWS will be initiating a research report on DTE Energy in the coming days.
Today, AWS is promoting its earnings coverage on EIX; touching on DTE. Get our free coverage by signing up to:
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Earnings Reviewed
For the three months ended December 31, 2016, Edison International reported operational revenue of $2.88 billion, up 23.2% compared to the year period revenue of $3.05 billion; however the reported numbers lagged behind analysts' consensus of $3.05 billion. For FY16, the Company reported revenues of $11.87 billion.
For Q4 2016, Edison International posted net income of $345 million, or $1.06 per share, compared to a net loss of $79 million, or $0.24 loss per share, in Q4 2015. As adjusted, the Company's reported quarter core earnings were $332 million, or $1.02 per share, compared to core earnings of $287 million, or $0.88 per share, in the year ago same quarter. Edison International's earnings number surpassed market expectations of $0.96 per share. For FY16, Edison International reported net income of $1.31 billion, or $4.02 per share, compared to $1,020 million, or $3.13 per share, in FY15. On an adjusted basis, Edison International's core earnings were $1.29 billion, or $3.97 per share, compared to $1.34 billion, or $4.10 per share, in FY15.
Segment Results
Southern California Edison's (SCE) Q4 2016 net income had increased by $419 million, or $1.29 per share, from Q4 2015. SCE's increase in net income consisted of $49 million of higher core earnings and $370 million of higher non-core earnings. The increase in core earnings was due to an increase in revenue from the escalation mechanism as set forth in the 2015 General Rate Case (GRC) and lower operations and maintenance expenses, partially offset by higher net financing costs and tax expense. SCE's FY16 net income increased $378 million, or $1.16 per share, from FY15. SCE's increased net income consisted of $8 million, or $0.02 per share, of higher core earnings and $370 million, or $1.14 per share, of higher non-core earnings. The increase in core earnings was due to an increase in revenue from the escalation mechanism as set forth in the 2015 GRC and lower operations and maintenance expenses, partially offset by higher net financing costs and tax expense.
For Q4 2016, the Company's losses from continuing operations at Edison International Parent and Other increased by $16 million, or $0.05 per share, compared to Q4 2015. This increase consisted of $4 million of higher core losses and $12 million of non-core income related to the fourth quarter 2015. The higher core losses reflected lower revenue from Edison Capital's affordable housing investment portfolio, partially offset by lower corporate expenses. Additionally, Edison International recorded $13 million of income, or $0.04 per share, and losses of $8 million, or $0.02 per share, from discontinued operations for Q4 2016 and Q4 2015, respectively. Edison International Parent and Other losses from continuing operations for FY16 had increased by $64 million, or $0.19 per share, compared to FY15. This increase consisted of $50 million, or $0.15 per share, of higher core losses and $14 million, or $0.04 per share, of higher non-core losses. Edison International Parent and Other's non-core items for FY16 included income of $5 million, or $0.02 per share, compared to income of $9 million, or $0.03 per share, for FY15 related to losses under the HLBV accounting method.
2017 Earnings Guidance
Edison International announced basic and core earnings guidance of $4.04 to $4.24 per share for FY17.
Dividend
In a separate press release on February 24, 2017, Edison International's Board of Directors declared a quarterly common stock dividend of $0.5425 per share payable on April 30, 2017, to shareholders of record on March 31, 2017.
Stock Performance
Edison International's share price finished yesterday's trading session at $78.12, slipping 1.43%. A total volume of 1.87 million shares exchanged hands, which was higher than the 3 months average volume of 1.74 million shares. The stock has rallied 12.87% and 16.16% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 8.52%. The stock is trading at a PE ratio of 19.81 and has a dividend yield of 2.78%.
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