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What's in Store for Edison International (EIX) in Q1 Earnings?

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Edison International (EIX - Free Report) is scheduled to report first-quarter 2022 results on May 3 after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 10.48%. Edison International has a trailing four-quarter earnings surprise of 1.35%, on average.

Factors to Note

The majority of the company’s service territories witnessed warmer-than-normal temperatures, accompanied by dry weather conditions, during the first quarter of 2022. 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.

Meanwhile, the recent increase in commercial and industry load, buoyed by the recovery in economic activities witnessed in the past few months, may also have contributed to Edison International’s first-quarter top line. Further, higher revenues from the 2021 general rate case (GRC) final decision must have bolstered the company’s revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.12 billion, suggesting growth of 5.4% from the year-ago quarter.

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

California is a wildfire-prone region, wherein Edison International operates. In the first quarter, the company’s service area did experience some wildfire events. This might have caused power outages for its customers, apart from causing structural damage to its electric poles and associated infrastructure. Costs bore by the company to restore power and mend its infrastructure in such wildfire-stricken areas might have had an adverse impact on its Q1 earnings.  

The Zacks Consensus Estimate for first-quarter earnings is pegged at 74 cents per share, indicating a decline of 6.3% from the prior-year reported figure.

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 ESP and 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 #3 (Hold).

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

WEC Energy Group (WEC - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for WEC Energy’s first-quarter revenues and earnings is pegged at $2.80 billion and $1.66 per share, respectively. WEC has a four-quarter average earnings surprise of 9.07%.

Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +34.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Telephone and Data Systems first-quarter revenues and earnings is pegged at $1.34 billion and 26 cents, respectively. TDS has a four-quarter average negative earnings surprise of 42.61%.

Dominion Energy (D - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.17, respectively. D has a four-quarter average earnings surprise of 1.09%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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