It has been about a month since the last earnings report for Edison International (EIX Quick QuoteEIX - Free Report) . Shares have added about 2.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Edison International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Edison International Q1 Earnings Top, Revenues Rise Y/Y

Edison International reported first-quarter 2024 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.12 by 0.9%. The bottom line also increased 3.7% from $1.09 in the year-ago quarter.

The company incurred a GAAP loss of 3 cents per share against earnings of 81 cents per share recorded in the first quarter of 2023.

Total Revenues

Edison International's first-quarter operating revenues totaled $4.08 billion, which missed the Zacks Consensus Estimate of $4.14 billion by 1.6%. However, the top line increased 2.8% from the year-ago quarter’s figure of $3.97 billion.

Operational Highlights

During the first quarter of 2024, EIX’s total operating expenses increased 14.6% year over year to $3.83 billion.

Purchased power and fuel costs declined 23.5%, while depreciation and amortization expenses increased 7% during the same time frame.

Operation and maintenance (O&M) costs rose 21.5% in the first quarter of 2024, whereas property and other taxes climbed 10.7%.

Operating income amounted to $245 million during the first quarter of 2024 compared with $620 million in the prior-year period.

Segmental Results

Southern California Edison’s first-quarter adjusted earnings were $1.33 per share compared with $1.29 in the year-ago quarter. The increase can be attributed to higher revenues authorized in Track 4 of SCE’s 2021 General Rate Case and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism.

Edison International Parent and Other incurred a loss of 20 cents per share, which came in wider than the loss of 16 cents recorded in the year-ago quarter’s figure.

Financial Update

As of Mar 31, 2024, Edison International's cash and cash equivalents amounted to $992 million compared with $345 million as of Dec 31, 2023.

The long-term debt was $32.58 billion as of Mar 31, 2024, higher than the 2023-end level of $30.32 billion.

Net cash inflow from operating activities in the first quarter 2024 was $1.04 billion compared with net cash outflow of $0.90 billion in the prior-year period.

Total capital expenditures were $1.28 billion as of Mar 31, 2024, down from $1.32 billion in the year-ago period.

2024 Guidance

The company reiterated its 2024 guidance. EIX still expects to generate adjusted earnings in the range of $4.75-$5.05 per share.

The Zacks Consensus Estimate for earnings is currently pegged at $4.92 per share, which lies above the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Edison International has a subpar Growth Score of D, though it is lagging a bit 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 D. 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 this revision 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.