Edison International EIX is set to release first-quarter 2020 results on Apr 30, after market close.
In the last reported quarter, the company witnessed a negative earnings surprise of 4.81%. However, the company delivered a positive earnings surprise of 0.39%, on average, in the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors Under Consideration
Toward the end of February and the entire March, major parts of California experienced below-normal temperatures. This, in turn, is likely to have resulted in higher household expenditure on heating, which in turn is expected to have driven Edison International’s first-quarter top line.
In line with this, the Zacks Consensus Estimate for first-quarter revenues of $2.97 billion suggests a rise of 4.5% from the year-ago quarter’s reported figure.
At the onset of the last week of March, Edison International announced its voluntary postponement of non-critical planned projects to prioritize the health of its employees, in light of the coronavirus outbreak. This might have lowered the company’s forecasted expenditures for completing these projects, thereby boosting its bottom line. Also, dilution of shares is expected to have bolstered its earnings.
In line with this, the Zacks Consensus Estimate for first-quarter earnings is pegged at 77 cents, implying a 22.2% year-over-year improvement.
During the last week of March, the company announced that it is suspending service disconnections for non-payment and waiving late fees for residential and business customers affected by the COVID-19 emergency. The effects of these initiatives are expected to duly get reflected in the soon-to-be-reported quarterly performance.
Edison International Price and EPS Surprise
Edison International price-eps-surprise | Edison International Quote
Our proven model does not conclusively predict an earnings beat for Edison International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -4.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat this season.
Algonquin Power & Utilities Corp. AQN has an Earnings ESP of +1.42% and a Zacks Rank #2. The company will announce first-quarter 2020 earnings on May 7.
Consolidated Edison ED has an Earnings ESP of +0.69% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.
Avangrid, Inc. AGR has an Earnings ESP of +0.68% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on Apr 28.
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Edison International (EIX) : Free Stock Analysis Report
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