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What's in Store for Edison International (EIX) Q1 Earnings?

Zacks Equity Research

Edison International EIX is set to release first-quarter 2019 results on Apr 30, after the market closes.

In the last reported quarter, the company witnessed a negative earnings surprise of 6.00%. However, the company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 1.10%.

Let’s see how things are shaping up prior to this announcement.

Factors Under Consideration

During the first quarter, major parts of California experienced below-normal temperatures along with witnessing the coldest February in the last five decades. This, in turn, should result in higher household expenditure on heating, which is expected to have a favorable impact on the company’s revenues in the to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for first-quarter revenues of $2.65 billion suggests a rise of 3.5% from the year-ago quarter’s reported figure.

Management expects that the approval of the Z-factor filing related to recovery of previously-incurred wildfire insurance premiums will lead to a benefit of approximately 5 cents per share in the first quarter of 2019. This along with the expected revenue growth should drive the company’s bottom line in the to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for first-quarter earnings is pegged at 88 cents, which implies 10% rise from the figure reported in the year-ago quarter.

Earnings Whisper

Our proven model does not conclusively show that Edison International is likely to beat estimates in the first quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.

Earnings ESP: Edison International has an Earnings ESP of -3.04%. 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), further making surprise prediction difficult.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into earnings announcement, especially when the company is seeing negative estimate revisions.

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise | Edison International Quote

Stocks to Consider

Here are a few players from the Utilities sector that have the right combination of elements to post an earnings beat this quarter.

Entergy Corp. ETR has an Earnings ESP of +3.99% and a Zacks Rank #2. The company is scheduled to report first- quarter results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle West Capital Corp. PNW has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to report first-quarter results on May 1.

Consolidated Edison Inc. ED has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is scheduled to report first- quarter results on May 2.

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Consolidated Edison Inc (ED) : Free Stock Analysis Report
 
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