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Edison International (EIX) Beats on Q3 Earnings & Revenues

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Edison International (EIX - Free Report) reported third-quarter 2018 earnings per share of $1.56 from continuing operations, beating the Zacks Consensus Estimate of $1.31 by 19.1%. The bottom line also increased 9.1% from $1.43 in the year-ago quarter.

Excluding adjustments, the company reported quarterly earnings of $1.57 per share compared with $1.44 in third-quarter 2017.

Total Revenues

Edison International's third-quarter revenues came in at $4,269 million, surpassing the Zacks Consensus Estimate of $3,618 million by 18%. Moreover, the top line improved 16.3% from the year-ago quarter’s $3,672 million.

Operational Highlights

In the reported quarter, total operating expenses increased 13.2% to $3,530 million, mainly on account of higher purchased power and fuel expenses (29.3%). Meanwhile, operation and maintenance costs dropped 6.5%. Depreciation and amortization expenses declined 11% and property and other taxes dipped 1%.

Operating income surged 33.6% to $739 million in the reported quarter.

Interest expenses were $188 million, higher than $162 million reported in the prior-year quarter.

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 $1.64 per share compared with $1.43 a year ago. The increase in core earnings resulted from lower operation and maintenance expenses due to regulatory deferrals for line clearing and wildfire insurance costs, favorable impact of Tax Reform on incremental pre-tax earnings and higher revenues, owing to a reimbursement for spent nuclear fuel storage costs incurred in the reported quarter.

Parent and Other segment posted third-quarter losses of 7 cents per share, against the year-ago earnings of a penny. The deterioration was due to the impact of Tax Reform in 2018 and absence of tax benefits that the company recorded in 2017.

Financial Update

As of Sep 30, 2018, cash and cash equivalents were $71 million compared with $1,071 million as of Dec 31, 2017. Long-term debt was $14.63 billion, higher than the 2017-end level of $11.64 billion.

Net cash from operating activities during the first nine months of 2018 was $2,271 million compared with $2,698 million in the year-ago quarter. Total capital expenditure amounted to $3,241 million in the nine months ended Sep 30, 2018, up from $2,674 million a year ago.

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 Utility Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%. The reported figure also improved 43.9% from the year-ago quarter’s $1.48.

NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%. Moreover, earnings were up 17.8% on a year-over-year basis.

American Electric Power (AEP - Free Report) reported third-quarter 2018 operating earnings per share of $1.26, surpassing the Zacks Consensus Estimate of $1.23 by 2.4%.

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