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What's in Store for Edison International (EIX) in Q4 Earnings?
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Edison International (EIX - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24 after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 3.98%. Edison International has a trailing four-quarter negative earnings surprise of 2.08%, on average.
Factors to Note
The majority of the company’s service territories witnessed warmer-than-normal temperatures in October. This is likely to have boosted electricity demand for cooling purposes among the company’s customers, which must have contributed to the to-be-reported quarter's top line.
However, the storm and heavy rainfall condition leading to flash flooding and power outages in some parts of its service territories may have disrupted the smooth flow of electricity to its customers. This, in turn, may have partially hurt revenues of the company in the soon-to-be-reported quarter.
Also, Edison International’s service territories experienced warmer autumn conditions accompanied by below-normal precipitation in some parts in November and December. This is likely to have negatively impacted EIX’s quarterly top line compared with the last year since the autumn season usually brings in cool temperatures. Hence, the overall impact of the weather pattern on the company’s revenues is likely to have been mixed.
Meanwhile, the recovery observed in the commercial and industry load, buoyed by economic growth, may have contributed to Edison International’s fourth-quarter top line.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.28 billion, suggesting growth of 4% from the year-ago quarter.
Flash flooding caused by storms and heavy rainfall may have caused infrastructural damage to Edison International’s properties in the fourth quarter. This is likely to have increased the company’s restoration costs, thus hurting the fourth quarter’s bottomline.
The impairment loss and other costs related to the sale of its Power's Fossil fleet may have continued to negatively impact earnings in the fourth quarter. Additionally, an unfavorable tax impact is likely to dampen earnings of the company in the soon-to-be-reported quarter. However, lower depreciation expenses associated with Fossil assets and lower solar expenses are likely to have offset the negative cost impact.
The Zacks Consensus Estimate for fourth-quarter earningsis pegged at $1.05 per share, indicating a decline of 11.8% from the prior-year reported figure.
Our proven model does not conclusively predict an earnings beat for EIX this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see.
Earnings ESP:The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International currently carries a Zacks Rank #4 (Sell).
Here are two Utility players that you may want to consider as these have the right combination of elements to post an earnings beat this season:
Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.
It boasts a long-term earnings growth rate of 3.6%. The Zacks Consensus Estimate for Public Service Enterprise Group’s fourth-quarter sales and earnings is pegged at $2.50 billion and 68 cents per share, respectively. PEG has a four-quarter average earnings surprise of 4.57%.
American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. American Electric boasts a long-term earnings growth rate of 5.7%.
The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.
Eversource Energy (ES - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.24 per share, implies growth of 7.8% from the prior-year quarter’s tally.
Eversource Energy boasts a long-term earnings growth rate of 6.1%. ES has a four-quarter negative earnings surprise of 0.43%.
Image: Bigstock
What's in Store for Edison International (EIX) in Q4 Earnings?
Edison International (EIX - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24 after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 3.98%. Edison International has a trailing four-quarter negative earnings surprise of 2.08%, on average.
Factors to Note
The majority of the company’s service territories witnessed warmer-than-normal temperatures in October. This is likely to have boosted electricity demand for cooling purposes among the company’s customers, which must have contributed to the to-be-reported quarter's top line.
However, the storm and heavy rainfall condition leading to flash flooding and power outages in some parts of its service territories may have disrupted the smooth flow of electricity to its customers. This, in turn, may have partially hurt revenues of the company in the soon-to-be-reported quarter.
Also, Edison International’s service territories experienced warmer autumn conditions accompanied by below-normal precipitation in some parts in November and December. This is likely to have negatively impacted EIX’s quarterly top line compared with the last year since the autumn season usually brings in cool temperatures. Hence, the overall impact of the weather pattern on the company’s revenues is likely to have been mixed.
Meanwhile, the recovery observed in the commercial and industry load, buoyed by economic growth, may have contributed to Edison International’s fourth-quarter top line.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.28 billion, suggesting growth of 4% from the year-ago quarter.
Flash flooding caused by storms and heavy rainfall may have caused infrastructural damage to Edison International’s properties in the fourth quarter. This is likely to have increased the company’s restoration costs, thus hurting the fourth quarter’s bottomline.
The impairment loss and other costs related to the sale of its Power's Fossil fleet may have continued to negatively impact earnings in the fourth quarter. Additionally, an unfavorable tax impact is likely to dampen earnings of the company in the soon-to-be-reported quarter. However, lower depreciation expenses associated with Fossil assets and lower solar expenses are likely to have offset the negative cost impact.
The Zacks Consensus Estimate for fourth-quarter earningsis pegged at $1.05 per share, indicating a decline of 11.8% from the prior-year reported figure.
Edison International Price and EPS Surprise
Edison International price-eps-surprise | Edison International Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for EIX this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see.
Earnings ESP:The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are two Utility players that you may want to consider as these have the right combination of elements to post an earnings beat this season:
Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.
It boasts a long-term earnings growth rate of 3.6%. The Zacks Consensus Estimate for Public Service Enterprise Group’s fourth-quarter sales and earnings is pegged at $2.50 billion and 68 cents per share, respectively. PEG has a four-quarter average earnings surprise of 4.57%.
American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. American Electric boasts a long-term earnings growth rate of 5.7%.
The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.
Eversource Energy (ES - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.24 per share, implies growth of 7.8% from the prior-year quarter’s tally.
Eversource Energy boasts a long-term earnings growth rate of 6.1%. ES has a four-quarter negative earnings surprise of 0.43%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.