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Edison International Set to Report Q3 Earnings: What's in the Cards?

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Edison International (EIX - Free Report) is scheduled to release third-quarter 2024 results on Oct. 29, after market close.

See the Zacks Earnings Calendar to stay ahead of market-making news.

This utility company delivered an earnings surprise of 16.19% in the last reported quarter.

The company’s trailing four-quarter earnings surprise is 4.13%, on average. Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of EIX's Upcoming Results

EIX’s service territories experienced above-normal temperature patterns for the majority of the third quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this summer, which is expected to have contributed favorably to its quarterly revenues.
 

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

Also, higher revenues authorized in Track 4 of the 2021 General Rate Case approval are anticipated to have added an impetus to the company’s revenues.
 
However, a series of heatwaves caused a few notable wildfires, like the Thompson and Park fires, during the months of July and August in California, which are likely to have caused outages for some of EIX’s customers as well as damaged its infrastructure. Such outages are expected to have partially hurt the overall top-line performance.
 
Solid revenue expectations and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism are likely to have boosted EIX’s bottom-line growth. However, high-interest expenses, increased operating expenses projected for the restoration of its infrastructure in connection to the aforementioned wildfire and notable charges for wildfire-related claims, net of insurance recoveries, are expected to have partially hurt the overall earnings performance.

Q3 Expectations for EIX

The Zacks Consensus Estimate for EIX’s sales is pegged at $4.71 billion, which indicates an increase of 0.2% from the year-ago number.

The consensus estimate for earnings is pegged at $1.43 per share, which implies an improvement of 3.6% from the prior-year quarter.

What Our Model Predicts for EIX

Our proven model does not conclusively predict an earnings beat for EIX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank:  Edison International currently carries a Zacks Rank of 3. You can see the complete list of Zacks Rank #1 stocks here.

Stocks to Consider

Investors can consider the following players from the same industry, which have the right combination of elements to post an earnings beat in their quarterly results.

The AES Corporation (AES - Free Report) is scheduled to report its third-quarter results on Oct. 31, after market close. It has an Earnings ESP of +1.11% and a Zacks Rank of 3 at present.
 
The Zacks Consensus Estimate for sales is pegged at $3.62 billion, which indicates a 5.4% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 60 cents per share.

The Southern Company (SO - Free Report) is scheduled to report its third-quarter results on Oct. 31, before market open. It has an Earnings ESP of +0.95% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $7.14 billion, which indicates a 2.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $1.32 per share.

Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report its third-quarter results on Nov. 4, before market open. It has an Earnings ESP of +1.50% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for its sales is pegged at $2.51 billion, which indicates a 2.4% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 94 cents per share.

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