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What Awaits Edison International (EIX) This Earnings Season?
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Edison International (EIX - Free Report) ) is slated to report its fourth-quarter and full-year 2022 results on Feb 23 after market close. Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.88%.
Factors to Note
In the fourth quarter of 2022, EIX’s service territories witnessed warmer-than-normal temperatures and extremely dry weather conditions, leading to severe drought conditions. Such a weather pattern is likely to have boosted the demand for electricity for cooling purposes, benefiting the revenues of the company in the fourth quarter of 2022.
Additionally, the positive impact of the general rate case may have boosted the revenues of the company in the soon-to-be-reported quarter. However, the immense drought-like condition may have caused wildfire events, which are likely to have disrupted the smooth flow of electricity to its customers. This may have partially dampened the company’s fourth-quarter revenues.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.63 billion. This suggests an increase of 8.9% from the year-ago quarter.
Considering the current interest rate environment, the company is likely to have incurred higher interest expenses in the fourth quarter, which might have hurt its bottom line.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.08 per share. This indicates a decline of 6.9% from the prior-year reported figure.
Our proven model predicts 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 the case here.
Earnings ESP: EIX’s Earnings ESP is +0.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three other utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +1.79% and a Zacks Rank #3. The Zacks Consensus Estimate for DTE Energy’s fourth-quarter revenues is pegged at $4.07 billion, suggesting a decline of 12.4% from the year-ago quarter.
The Zacks Consensus Estimate for DTE’s fourth-quarter earnings is pegged at $1.22 per share, indicating growth of 16.2% from the prior-year reported figure.
NiSource (NI - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at 49 cents per share, suggests growth of 25.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for NI’s fourth-quarter sales implies a growth rate of 10.4% from the prior-year quarter figure. NiSource has a four-quarter earnings surprise of 0.33%.
Sempra (SRE - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $2.06 per share, suggests a decline of 4.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales implies a decrease of 0.8% from the prior-year quarter figure. Sempra has a four-quarter earnings surprise of 6.88%.
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What Awaits Edison International (EIX) This Earnings Season?
Edison International (EIX - Free Report) ) is slated to report its fourth-quarter and full-year 2022 results on Feb 23 after market close. Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.88%.
Factors to Note
In the fourth quarter of 2022, EIX’s service territories witnessed warmer-than-normal temperatures and extremely dry weather conditions, leading to severe drought conditions. Such a weather pattern is likely to have boosted the demand for electricity for cooling purposes, benefiting the revenues of the company in the fourth quarter of 2022.
Additionally, the positive impact of the general rate case may have boosted the revenues of the company in the soon-to-be-reported quarter. However, the immense drought-like condition may have caused wildfire events, which are likely to have disrupted the smooth flow of electricity to its customers. This may have partially dampened the company’s fourth-quarter revenues.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.63 billion. This suggests an increase of 8.9% from the year-ago quarter.
Considering the current interest rate environment, the company is likely to have incurred higher interest expenses in the fourth quarter, which might have hurt its bottom line.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.08 per share. This indicates a decline of 6.9% 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 predicts 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 the case here.
Earnings ESP: EIX’s Earnings ESP is +0.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +1.79% and a Zacks Rank #3. The Zacks Consensus Estimate for DTE Energy’s fourth-quarter revenues is pegged at $4.07 billion, suggesting a decline of 12.4% from the year-ago quarter.
The Zacks Consensus Estimate for DTE’s fourth-quarter earnings is pegged at $1.22 per share, indicating growth of 16.2% from the prior-year reported figure.
NiSource (NI - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at 49 cents per share, suggests growth of 25.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for NI’s fourth-quarter sales implies a growth rate of 10.4% from the prior-year quarter figure. NiSource has a four-quarter earnings surprise of 0.33%.
Sempra (SRE - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $2.06 per share, suggests a decline of 4.6% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales implies a decrease of 0.8% from the prior-year quarter figure. Sempra has a four-quarter earnings surprise of 6.88%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.