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What's in Store for Edison International (EIX) Q3 Earnings?

Zacks Equity Research
·3 min read

Edison International EIX is set to release third-quarter 2020 results on Oct 27, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 9.91%.

The company missed the Zacks Consensus Estimate in the trailing four quarters, the average negative earnings surprise being 8.88%.

Let's take a closer look at the factors influencing Edison International’s upcoming results.

Factors Under Consideration

During most part of the third quarter, major parts of California experienced above-average temperatures, highlighted by dry and warm weather conditions. Especially in August and September, California ranked warmest on record for maximum temperatures. This is likely to have resulted in higher electricity demand leading to increased household expenditure on cooling, which is likely to have boosted Edison International’s top line in the third quarter.

In line with this, the Zacks Consensus Estimate for third-quarter revenues of $3.96 billion indicates a rise of 5.9% from the year-ago quarter’s reported figure.

The company had earlier anticipated another active fire season in California heading into the third quarter of 2020. As anticipated, several large wildfires ignited throughout the third quarter. This might have escalated the company’s operational and maintenance expenses as well as wildfire-related costs during the quarter.

Further, the overall cost structure is expected to have escalated due to the prolonged economic impact of the COVID-19 pandemic on the company's operations. Such expenses might have had an adverse impact on the company’s performance during the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Edison International’s third-quarter earnings is pegged at $1.38 per share, suggesting a 7.4% decline from the year-ago quarter’s reported figure.

Earnings Whispers

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 that is not the case here as elaborated below.

Earnings ESP: Edison International has an Earnings ESP of +3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell).

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise
Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

Stocks to Consider

Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Electric Power AEP is set to release third-quarter earnings on Oct 22. It has an Earnings ESP of +0.04% and a Zacks Rank #3, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

CMS Energy CMS is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +0.47% and a Zacks Rank #3, currently.

Exelon Corporation EXC is expected to release third-quarter numbers soon. It has an Earnings ESP of +1.20% and a Zacks Rank of 3, currently.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Edison International (EIX) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
CMS Energy Corporation (CMS) : Free Stock Analysis Report
Exelon Corporation (EXC) : Free Stock Analysis Report
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