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Why Is Edison International (EIX) Down 0.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Edison International (EIX - Free Report) . Shares have lost about 0.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Edison International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Edison International Q1 Earnings Beat, Sales Rise Y/Y
Edison International reported first-quarter 2022 adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of 74 cents by 44.6%. The bottom line also surged 35.4% from the year-ago quarter’s earnings of 79 cents per share.
The company recorded GAAP earnings of 22 cents per share compared with the 68 cents reported in the first quarter of 2021.
Total Revenues
Edison International's first-quarter revenues totaled $3,968 million, which surpassed the Zacks Consensus Estimate of $3,130 million by 26.8%. Also, the top line rose 34.1% from the year-ago quarter’s $2,960 million.
Operational Highlights
In the reported quarter, total operating expenses increased 44.8% year over year to $3,709 million.
Purchased power and fuel costs rose 2.4%, while depreciation and amortization expenses increased 11%.
Operation and maintenance costs increased 76.8% year over year, whereas property and other taxes remained flat with the prior-year quarter figure.
The operating income amounted to $259 million in the first quarter of 2022, which declined by 35.1% from the year-ago quarter.
Segment Results
Southern California Edison’s (SCE) first-quarter adjusted earnings were $1.23 per share compared with 89 cents in the year ago quarter. The increase in SCE’s core earnings can be attributed to higher revenues from the 2021 General Rate Case final decision.
The Parent and Other segment incurred a loss of 16 cents per share compared with the year-ago quarter’s loss of 10 cents. The loss increased primarily due to higher preferred dividends.
Financial Update
As of Mar 31, 2022, Edison International's cash and cash equivalents amounted to $231 million compared with $390 million as of Dec 31, 2021.
The long-term debt was $24.97 billion as of Mar 31, 2022, higher than the 2021-end level of $24.18 billion.
The net cash flow from the operating activities in the first quarter was $792 million compared with $72 million in the prior-year quarter.
Total capital expenditures totaled $1,207 million at the end of the first quarter, down from $1,358 million in the year-ago period.
2022 Guidance
The company reaffirmed its 2022 guidance. EIX continues to expect adjusted earnings in the range of $4.40-$4.70 per share. The Zacks Consensus Estimate for earnings is currently pegged at $4.45 per share, lower than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Edison International has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Edison International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Edison International belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Entergy (ETR - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Entergy reported revenues of $2.88 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $1.32 for the same period compares with $1.47 a year ago.
For the current quarter, Entergy is expected to post earnings of $1.39 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Entergy. Also, the stock has a VGM Score of D.
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Why Is Edison International (EIX) Down 0.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Edison International (EIX - Free Report) . Shares have lost about 0.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Edison International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Edison International Q1 Earnings Beat, Sales Rise Y/Y
Edison International reported first-quarter 2022 adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of 74 cents by 44.6%. The bottom line also surged 35.4% from the year-ago quarter’s earnings of 79 cents per share.
The company recorded GAAP earnings of 22 cents per share compared with the 68 cents reported in the first quarter of 2021.
Total Revenues
Edison International's first-quarter revenues totaled $3,968 million, which surpassed the Zacks Consensus Estimate of $3,130 million by 26.8%. Also, the top line rose 34.1% from the year-ago quarter’s $2,960 million.
Operational Highlights
In the reported quarter, total operating expenses increased 44.8% year over year to $3,709 million.
Purchased power and fuel costs rose 2.4%, while depreciation and amortization expenses increased 11%.
Operation and maintenance costs increased 76.8% year over year, whereas property and other taxes remained flat with the prior-year quarter figure.
The operating income amounted to $259 million in the first quarter of 2022, which declined by 35.1% from the year-ago quarter.
Segment Results
Southern California Edison’s (SCE) first-quarter adjusted earnings were $1.23 per share compared with 89 cents in the year ago quarter. The increase in SCE’s core earnings can be attributed to higher revenues from the 2021 General Rate Case final decision.
The Parent and Other segment incurred a loss of 16 cents per share compared with the year-ago quarter’s loss of 10 cents. The loss increased primarily due to higher preferred dividends.
Financial Update
As of Mar 31, 2022, Edison International's cash and cash equivalents amounted to $231 million compared with $390 million as of Dec 31, 2021.
The long-term debt was $24.97 billion as of Mar 31, 2022, higher than the 2021-end level of $24.18 billion.
The net cash flow from the operating activities in the first quarter was $792 million compared with $72 million in the prior-year quarter.
Total capital expenditures totaled $1,207 million at the end of the first quarter, down from $1,358 million in the year-ago period.
2022 Guidance
The company reaffirmed its 2022 guidance. EIX continues to expect adjusted earnings in the range of $4.40-$4.70 per share. The Zacks Consensus Estimate for earnings is currently pegged at $4.45 per share, lower than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Edison International has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Edison International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Edison International belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Entergy (ETR - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Entergy reported revenues of $2.88 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $1.32 for the same period compares with $1.47 a year ago.
For the current quarter, Entergy is expected to post earnings of $1.39 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Entergy. Also, the stock has a VGM Score of D.