Edison International (EIX - Free Report) reported second-quarter 2016 results, wherein adjusted earnings of 85 cents per share came in below the Zacks Consensus Estimate of $1.00 by 15%. The quarterly number also declined 26.7% from $1.16 a year ago, impacted by taxes and rate-case decision.
Total Revenues
Edison International's second-quarter revenues were $2,777 million, lagging the Zacks Consensus Estimate of $2,813 million by 1.3%. Quarterly revenues also declined 4.5% from $2,908 million a year ago.
Operational Highlights
In the reported quarter, total operating expenses increased 0.5% to $2,396 million mainly on account of higher depreciation, decommissioning and amortization expenses (up by 5%).
Total fuel and power purchase cost was $1,064 million, down from $1,078 million in the year-ago period. Total operations and maintenance expenses decreased 3% to $721 million.
Operating income was down 27.3% to $381 million in the reported quarter.
Interest expenses were $144 million, higher than $138 million in the second quarter of 2015.
Segment Results
Southern California Edison’s (“SCE”) second-quarter adjusted earnings were 97 cents per share, down 17.8% from the year-ago figure of $1.18. Earnings in the reported quarter declined due to income-tax benefits recorded in the same period last year and the delay in receiving a rate-case decision for the utility.
The company said that it witnessed $100 million or 31 cents per share in income-tax benefits in the second quarter of 2015, hurting the comparison for the latest quarter. The timing of the rate-case decision in 2015 also affected data. Hence, the company pointed out that year-over-year comparisons were “not meaningful.”
Edison International Parent and Other segment incurred a second-quarter 2016 core loss of 11 cents per share, wider than the year-ago loss of 2 cents per share.
Financial Update
As of Jun 30, 2016, cash and cash equivalents were $111 million, down from $161 million as of Dec 31, 2015. Long-term debt was $10.85 billion, lower than the 2015-end level of $10.88 billion.
Net cash from operating activities during the first half of 2016 was $1,429 million, compared with $1,768 million a year ago. Total capital expenditure amounted to $1,828 million during the period, down from $2,197 million in the year-ago period.
Guidance
The company reaffirmed its core earnings in the range of $3.81 to $4.01 per share for 2016.
The company projected capital expenditure of $7.9–$8.1 million over 2016–2017 at SCE.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%. Quarterly earnings also increased 80% from the year-ago figure of 25 cents.
Zacks Rank
Edison International presently carries a Zacks Rank #3 (Hold).
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Edison International (EIX - Free Report) reported second-quarter 2016 results, wherein adjusted earnings of 85 cents per share came in below the Zacks Consensus Estimate of $1.00 by 15%. The quarterly number also declined 26.7% from $1.16 a year ago, impacted by taxes and rate-case decision.
Total Revenues
Edison International's second-quarter revenues were $2,777 million, lagging the Zacks Consensus Estimate of $2,813 million by 1.3%. Quarterly revenues also declined 4.5% from $2,908 million a year ago.
Operational Highlights
In the reported quarter, total operating expenses increased 0.5% to $2,396 million mainly on account of higher depreciation, decommissioning and amortization expenses (up by 5%).
Total fuel and power purchase cost was $1,064 million, down from $1,078 million in the year-ago period. Total operations and maintenance expenses decreased 3% to $721 million.
Operating income was down 27.3% to $381 million in the reported quarter.
Interest expenses were $144 million, higher than $138 million in the second quarter of 2015.
Segment Results
Southern California Edison’s (“SCE”) second-quarter adjusted earnings were 97 cents per share, down 17.8% from the year-ago figure of $1.18. Earnings in the reported quarter declined due to income-tax benefits recorded in the same period last year and the delay in receiving a rate-case decision for the utility.
The company said that it witnessed $100 million or 31 cents per share in income-tax benefits in the second quarter of 2015, hurting the comparison for the latest quarter. The timing of the rate-case decision in 2015 also affected data. Hence, the company pointed out that year-over-year comparisons were “not meaningful.”
Edison International Parent and Other segment incurred a second-quarter 2016 core loss of 11 cents per share, wider than the year-ago loss of 2 cents per share.
Financial Update
As of Jun 30, 2016, cash and cash equivalents were $111 million, down from $161 million as of Dec 31, 2015. Long-term debt was $10.85 billion, lower than the 2015-end level of $10.88 billion.
Net cash from operating activities during the first half of 2016 was $1,429 million, compared with $1,768 million a year ago. Total capital expenditure amounted to $1,828 million during the period, down from $2,197 million in the year-ago period.
Guidance
The company reaffirmed its core earnings in the range of $3.81 to $4.01 per share for 2016.
The company projected capital expenditure of $7.9–$8.1 million over 2016–2017 at SCE.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%. Quarterly earnings also increased 80% from the year-ago figure of 25 cents.
Zacks Rank
Edison International presently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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