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Edison International (EIX) Q4 Earnings Beat, Sales Rise Y/Y

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Edison International (EIX - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.16 per share, which surpassed the Zacks Consensus Estimate of $1.05 by 10.5%. However, the bottom line deteriorated 2.5% from the year-ago quarter’s earnings.

The company recorded GAAP earnings of $1.38 per share compared with $1.39 reported in the fourth quarter of 2020.

Edison International reported adjusted operating earnings per share (EPS) of $4.59 for full-year 2021, which increased 1.5% from $4.52 reported in 2020. Reported earnings also beat the Zacks Consensus Estimate of $4.48 per share by 2.5%.

Total Revenues

Edison International's fourth-quarter revenues totaled $3,331 million, which surpassed the Zacks Consensus Estimate of $3,283 million by 1.5%. Also, the top line rose 5.5% from the year-ago quarter’s $3,157 million.

In 2021, EIX generated sales worth $14.91 billion, up 9.8% from the year-ago figure. Sales beat the Zacks Consensus Estimate of $14.86 billion by 0.3%.

Edison International Price, Consensus and EPS Surprise

Edison International Price, Consensus and EPS Surprise

Edison International price-consensus-eps-surprise-chart | Edison International Quote

Operational Highlights

In the reported quarter, total operating expenses increased 14.7% year over year to $2,710 million.

Purchased power and fuel costs rose 3.3%, while depreciation and amortization expenses increased 11.3%.

Operation and maintenance costs increased 14.4% year over year, whereas property and other taxes dropped 0.9%.

Operating income amounted to $621 million in the fourth quarter of 2021, which declined 21.8% from the year-ago quarter.

Segment Results

Southern California Edison’s (SCE) fourth-quarter adjusted earnings were $1.34 per share compared with $1.30 a year ago. The increase in SCE’s core earnings can be attributed to higher revenues from the 2021 General Rate Case final decision and income tax benefits from the settlement of 2007 – 2012 California tax audits.

The Parent and Other segment incurred a loss of 18 cents per share compared with the year-ago quarter’s loss of 11 cents.

Financial Update

As of Dec 31, 2021, Edison International's cash and cash equivalents amounted to $390 million compared with $87 million as of Dec 31, 2020.

Long-term debt was $24.18 billion as of Dec 31, 2021, higher than the 2020-end level of $19.63 billion.

Net cash flow from operating activities in 2021 was $11 million compared with $1,263 million in the prior year.

Total capital expenditures totaled $5,505 million in 2021, up from $5,484 million a year ago.

2022 Guidance

The company initiated its 2022 guidance. Its adjusted earnings are projected in the range of $4.40-$4.70 per share. The Zacks Consensus Estimate for earnings is currently pegged at $4.46 per share, less than the midpoint of the company’s guided range.

Zacks Rank

Edison International currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Hawaiian Electric Industries, Inc. (HE - Free Report) reported EPS of 50 cents for the fourth quarter of 2021, which surpassed the Zacks Consensus Estimate of 45 cents by 11.1%. The bottom line also improved 8.7% from 46 cents per share in the prior-year quarter.

The Zacks Consensus Estimate for Hawaiian Electric’s 2022 earnings is pegged at $2.12 per share, which implies a year-over-year decline of 5.8%. HE boasts a long-term earnings growth rate of 3.2%.

Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported fourth-quarter 2021 adjusted operating earnings of 69 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 1.5%. The bottom line also improved 6.2% on a year-over-year basis.

The Zacks Consensus Estimate for PSEG’s 2022 earnings is pegged at $3.65 per share, which implies a year-over-year growth of 6.4%. PEG boasts a long-term earnings growth rate of 3.6%.

DTE Energy Company (DTE - Free Report) reported fourth-quarter 2021 operating EPS of $1.05, which surpassed the Zacks Consensus Estimate of 94 cents by 11.7%. The bottom line also increased 1.9% from the year-ago quarter’s $1.03 per share.

The Zacks Consensus Estimate for DTE Energy’s 2022 earnings is pegged at $5.94 per share, which implies a year-over-year slip of 0.8%. DTE boasts a long-term earnings growth rate of 6%.