We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Edison International (EIX) Q1 Earnings: What's in Store?
Read MoreHide Full Article
Electric utility provider Edison International (EIX - Free Report) is scheduled to report first-quarter 2017 earnings results on May 1 after market close.
Last quarter, the company recorded a positive earnings surprise of 5.21%. However, the company surpassed the Zacks Consensus Estimate in only one of the trailing four quarters, with average negative surprise of 5.18%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors at Play
Edison International’s chief unit, Southern California Edison (“SCE”), operates in a supportive regulatory environment that allows the utility to grow systematically. The company is also implementing infrastructure improvement programs like SmartConnect and Solar Photovoltaic Program that focus mainly on system reliability, smart grid technology and compliance with California's renewable energy mandate. We expect gains from these initiatives to reflect in the first-quarter’s results.
However, the company's service territories witnessed warmer-than-normal temperatures during the quarter. This will result in lower household expenditure on heating, which is expected to unfavorably impact revenues.
Moreover, Edison International’s operations are subject to complex federal, state and local legislative requirements as well as extensive environmental regulations. The company generates more than 80% of its revenues from regulated utility assets. Hence, its earnings are dependent on approvals from regulatory bodies and any adverse ruling could impact its performance.
Overall, for the first quarter, the Zacks Consensus Estimate for earnings reflect a year-over-year increase of 5.12%, while that for revenues the same is pegged at $2.50 billion, thereby reflecting 2.38% growth.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Edison International this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as elaborated below.
Zacks ESP: Edison International has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 86 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Pattern Energy Group, Inc. has an Earnings ESP of +300% and a Zacks Rank #3. The company is expected to report first-quarter results on May 8.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3. The company is slated to release first-quarter results on May 2.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Edison International (EIX) Q1 Earnings: What's in Store?
Electric utility provider Edison International (EIX - Free Report) is scheduled to report first-quarter 2017 earnings results on May 1 after market close.
Last quarter, the company recorded a positive earnings surprise of 5.21%. However, the company surpassed the Zacks Consensus Estimate in only one of the trailing four quarters, with average negative surprise of 5.18%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors at Play
Edison International’s chief unit, Southern California Edison (“SCE”), operates in a supportive regulatory environment that allows the utility to grow systematically. The company is also implementing infrastructure improvement programs like SmartConnect and Solar Photovoltaic Program that focus mainly on system reliability, smart grid technology and compliance with California's renewable energy mandate. We expect gains from these initiatives to reflect in the first-quarter’s results.
However, the company's service territories witnessed warmer-than-normal temperatures during the quarter. This will result in lower household expenditure on heating, which is expected to unfavorably impact revenues.
Moreover, Edison International’s operations are subject to complex federal, state and local legislative requirements as well as extensive environmental regulations. The company generates more than 80% of its revenues from regulated utility assets. Hence, its earnings are dependent on approvals from regulatory bodies and any adverse ruling could impact its performance.
Overall, for the first quarter, the Zacks Consensus Estimate for earnings reflect a year-over-year increase of 5.12%, while that for revenues the same is pegged at $2.50 billion, thereby reflecting 2.38% growth.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Edison International this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as elaborated below.
Zacks ESP: Edison International has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 86 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison International currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Edison International Price and EPS Surprise
Edison International Price and EPS Surprise | Edison International Quote
Stocks that Warrant a Look
Here are a few utility stocks which have the right combination of elements to post an earnings beat this quarter:
NiSource, Inc. (NI - Free Report) will report first-quarter results on May 3. The company has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pattern Energy Group, Inc. has an Earnings ESP of +300% and a Zacks Rank #3. The company is expected to report first-quarter results on May 8.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3. The company is slated to release first-quarter results on May 2.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>