It has been about a month since the last earnings report for Edison International (
EIX Quick Quote EIX - Free Report) . Shares have lost about 5.8% in that time frame, underperforming 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 Surpass Estimates
Edison International reported first-quarter 2023 adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate by 4.8%. The bottom line also increased 1.9% from $1.07 in the year-ago quarter.
The company recorded a GAAP loss of 81 cents per share compared with the 22 cents reported in the first quarter of 2022.
Edison International's first-quarter revenues totaled $3,966 million, which missed the Zacks Consensus Estimate of $4,111 million by 3.5%. However, the top line was almost in line with the year-ago quarter’s revenues of $3,968 million.
In the reported quarter, total operating expenses decreased 9.8% year over year to $3,346 million.
Purchased power and fuel costs rose 27.1%, while depreciation and amortization expenses increased 12.5%.
Operation and maintenance costs decreased 27.1% year over year, whereas property and other taxes increased 11.1% from the prior-year quarter figure.
The operating income amounted to $620 million in the first quarter of 2023 compared with $259 million in the year-ago quarter.
Southern California Edison’s (“SCE”) first-quarter adjusted earnings were $1.29 per share compared with $1.23 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.
Edison International Parent and Other incurred a loss of 20 cents per share compared with the year-ago quarter’s loss of 16 cents per share.
As of Mar 31, 2023, Edison International's cash and cash equivalents amounted to $836 million compared with $914 million as of Dec 31, 2022.
The long-term debt was $29.44 billion as of Mar 31, 2023, higher than the 2022-end level of $27.03 billion.
Net cash outflow from operating activities for the three months ended Mar 31, 2023 was $90 million compared to the cash inflow of $792 million in the prior-year period.
Total capital expenditures came in at $1,316 million for the three months ended Mar 31, 2023, up from $1,207 million in the year-ago period.
The company reaffirmed its 2023 guidance. EIX expects earnings in the range of $4.55-$4.85 per share.
The Zacks Consensus Estimate for earnings is currently pegged at $4.74 per share, which is higher than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
At this time, Edison International has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Edison International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.