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Edison International (EIX) Q3 Earnings Beat, Revenues Up Y/Y

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Edison International (EIX - Free Report) reported third-quarter 2020 adjusted earnings of $1.67 per share, which exceeded the Zacks Consensus Estimate of $1.44 by 16%. The bottom line also improved 11.3% from the year-ago quarter’s earnings of $1.50. The year-over-year bottom-line growth can be attributed to higher revenues.

Excluding adjustments, the company incurred a quarterly loss of 76 cents per share from continuing operations against quarterly earnings of $1.36 in third-quarter 2019.

Total Revenues

Edison International's third-quarter revenues totaled $4.64 billion, which surpassed the Zacks Consensus Estimate of $3.96 billion by 17.2%. Also, the top line rose 24.1% from the year-ago quarter’s $3.74 billion.

Operational Highlights

In the reported quarter, total operating expenses surged 61.8% year over year to $5,023 million.

Operation and maintenance costs grew 61.2% year over year, whereas purchased power and fuel costs rose 6.4%. Meanwhile, depreciation and amortization expenses increased 6.8%.

Segment Results

Southern California Edison’s (SCE) third-quarter earnings were $1.73 per share compared with $1.59 a year ago.

The Parent and Other segment incurred a loss of 6 cents per share compared with the year-ago quarter’s loss of 9 cents.

Edison International Price, Consensus and EPS Surprise

Financial Update

As of Sep 30, 2020, Edison International's cash and cash equivalents amounted to $92 million compared with $68 million as of Dec 31, 2019.

Long-term debt was $18.96 billion, higher than the 2019-end level of $17.87 billion.

Net cash inflow from operating activities during the first nine months of 2020 was $1,071 million against cash outflow of $871 million in the prior-year period.

Total capital expenditures totaled $3,897 million at the end of the third quarter, up from $3,497 million a year ago.

2020 Guidance

Edison International raised the lower end of its 2020 core operating earnings per share guidance range to $4.47 from $4.37. Hence, the 2020 core operating earnings are currently expected in the range of $4.47-$4.62. The Zacks Consensus Estimate of $4.45 lies below the company’s 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

American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

An Upcoming Release

FirstEnergy Corporation (FE - Free Report) is scheduled to report third-quarter 2020 results on Nov 2.

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