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Edison International (EIX) Misses on Q2 Earnings & Revenues

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Edison International (EIX - Free Report) reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%. Moreover, the bottom line declined 36.7% year over year.

Excluding adjustments, quarterly earnings came in at 85 cents per share from continuing operations compared with$1.20 in second-quarter 2019.

Total Revenues

Edison International's second-quarter revenues totaled $2.99 billion, which missed the Zacks Consensus Estimate of $3.02 billion by approximately 1%. However, the top line improved 6.2% from the year-ago quarter’s figure.

Operational Highlights

In the reported quarter, total operating expenses increased 7.6% year over year to $2,487 million. Operation and maintenance costs grew 28.1% year over year, while purchased power and fuel costs declined 5.9%. Meanwhile, depreciation and amortization expenses increased 52.3%.

Edison International registered an operating income of $500 million in the second quarter, in line with the year-ago quarter’s figure.

Interest expenses were $229 million, higher than $211 million incurred in the prior-year quarter.

Segment Results

Southern California Edison’s (SCE) second-quarter earnings were $1.10 per share compared with $1.66 a year ago.

The Parent and Other segment incurred a loss of 10 cents per share compared with the year-ago quarter’s loss of 8 cents.

Edison International Price, Consensus and EPS Surprise

As of Jun 30, 2020, Edison International's cash and cash equivalents amounted to $524 million compared with $68 million as of Dec 31, 2019. Long-term debt summed $19.24 billion, higher than the 2019-end level of $17.87 billion.

Net cash from operating activities during the first six months of 2020 was $625 million compared with $598 million in the prior-year period. Total capital expenditures amounted to $2,514 million at the end of the second quarter, up from $2,235 million a year ago.

2020 Guidance

Edison International narrowed its 2020 core operating earnings per share guidance to $4.37-$4.62. The Zacks Consensus Estimate of $4.43 lies below the midpoint of the guided range.

Zacks Rank

Edison International currently 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

NextEra Energy (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

Upcoming Releases

Dominion Energy (D - Free Report) is scheduled to report second-quarter 2020 results on Jul 31. The Zacks Consensus Estimate for quarterly earnings stands at 83 cents per share.

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