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Edison International (EIX) Q3 Earnings Top, Revenues Miss

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Edison International (EIX - Free Report) reported third-quarter 2017 earnings per share (EPS) of $1.43 from continuing operations beating the Zacks Consensus Estimate of $1.33 by 7.5%. The bottom line also increased 12.6% from $1.27 in the year ago.

Total Revenue

Edison International's third-quarter revenues came in at $3,672 million, missing the Zacks Consensus Estimate of $3,793 million by 3.2%. Also, the top line declined 3.2% from the year-ago figure of $3,767 million.

Operational Highlights

In the reported quarter, total operating expenses increased 1.3% to $3,111 million, mainly on account of higher purchased power and fuel expenses (3.7%), depreciation and amortization expenses (0.6%) as well as property and other taxes (6.5%). Meanwhile, operation and maintenance costs dropped 3.6%.

Operating income was down 19.3% to $561 million in the reported quarter.

Interest expenses were $162 million, higher than $147 million reported in the third quarter of 2016.

Edison International Price, Consensus and EPS Surprise

Edison International Price, Consensus and EPS Surprise | Edison International Quote

Segment Results

Southern California Edison’s (SCE) third-quarter earnings were $1.43 per share compared with $1.34 a year ago. Markedly, the bottom line in the reported quarter declined primarily on account of an escalation mechanism set forth in the 2015 General Rate Case (“GRC”) decision.

Parent and Other segment posted third-quarter earnings of 1 cent per share, as against the year-ago loss of 5 cents. The improvement reflects higher income tax benefits resulting from net operating loss carry backs from the filing of the 2016 tax returns in 2017.

Financial Update

As of Sep 30, cash and cash equivalents were $117 million, reflecting an increase from $96 million as of Dec 31, 2016. Long-term debt was $11.64 billion, higher than the 2016-end level of $10.18 billion.

Net cash from operating activities during the nine months was $2,690 million compared with $2,502 million in the year-ago quarter. Total capital expenditure amounted to $2,660 million during the third quarter, down from $2,773 million a year ago.

Guidance

The company raised its earnings guidance for 2017. Edison International now expects core earnings in the band of $4.27-$4.37 per share, up from $4.13-$4.33 per share, projected earlier.

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 Peer Releases

Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number improved 1.7% from the year-ago figure.

DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating EPS of $1.48, which missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.

American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 a year ago.

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