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Why Is Edison International (EIX) Up 2% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Edison International (EIX - Free Report) . Shares have added about 2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted 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 Tops Q1 Earnings, Lags Revenues
Edison International reported first-quarter 2017 adjusted earnings per share (EPS) of $1.10 from continuing operations which surpassed the Zacks Consensus Estimate of $0.89 by 23.6%. Reported earnings were also up 29.4% from $0.85 earned a year ago.
Total Revenue
Edison International's first-quarter revenues came in at $2,463 million, lagging the Zacks Consensus Estimate of $2,498 million by 1.4%. However, quarterly revenues inched up 0.9% from the year-ago tally of $2,440 million.
Operational Highlights
In the reported quarter, total operating expenses declined 0.4% to $1,984 million, mainly on account of lower purchased power and fuel (1.3%) expenses, as well as operation and maintenance expenses (5.2%).
On the other hand, Property and other taxes increased 8.7%, while depreciation, decommissioning and amortization expenses rose 4.6%.
Operating income was up 6.9% to $479 million in the reported quarter.
Interest expenses were $152 million, higher than $140 million reported in the first quarter of 2016.
Segment Results
Southern California Edison’s (SCE) first-quarter earnings were $1.07 per share, as compared with the year-ago earnings of $0.90. Earnings in the reported quarter improved primarily on account of an increase in revenues from the escalation mechanism as set forth in the 2015 General Rate Case (GRC) and lower operations and maintenance expenses, and higher income tax benefits, which were again partially offset by higher net financing costs related to SCE's capital spending program.
Edison International’s Parent and Other segment posted first-quarter 2017 core earnings of $0.04 per share against the year-ago loss of $0.04. The improvement reflects higher income tax benefits related to stock option exercises.
Financial Update
As of Mar 31, 2017, cash and cash equivalents were $150 million, reflecting an increase from $96 million as of Dec 31, 2016. Long-term debt was $11.66 billion, higher than the 2016-end level of $10.18 billion.
Net cash from operating activities during the first quarter was $879 million compared with $855 million in the year-ago quarter. Total capital expenditure amounted to $939 million during the first quarter, down from $951 million a year ago.
Guidance
The company reiterated its earnings guidance for 2017. Edison International expects core earnings in the band of $4.04 to $4.24 per share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.
At this time, Edison International's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. 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 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than those looking for growth and momentum.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Why Is Edison International (EIX) Up 2% Since the Last Earnings Report?
It has been about a month since the last earnings report for Edison International (EIX - Free Report) . Shares have added about 2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted 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 Tops Q1 Earnings, Lags Revenues
Edison International reported first-quarter 2017 adjusted earnings per share (EPS) of $1.10 from continuing operations which surpassed the Zacks Consensus Estimate of $0.89 by 23.6%. Reported earnings were also up 29.4% from $0.85 earned a year ago.
Total Revenue
Edison International's first-quarter revenues came in at $2,463 million, lagging the Zacks Consensus Estimate of $2,498 million by 1.4%. However, quarterly revenues inched up 0.9% from the year-ago tally of $2,440 million.
Operational Highlights
In the reported quarter, total operating expenses declined 0.4% to $1,984 million, mainly on account of lower purchased power and fuel (1.3%) expenses, as well as operation and maintenance expenses (5.2%).
On the other hand, Property and other taxes increased 8.7%, while depreciation, decommissioning and amortization expenses rose 4.6%.
Operating income was up 6.9% to $479 million in the reported quarter.
Interest expenses were $152 million, higher than $140 million reported in the first quarter of 2016.
Segment Results
Southern California Edison’s (SCE) first-quarter earnings were $1.07 per share, as compared with the year-ago earnings of $0.90. Earnings in the reported quarter improved primarily on account of an increase in revenues from the escalation mechanism as set forth in the 2015 General Rate Case (GRC) and lower operations and maintenance expenses, and higher income tax benefits, which were again partially offset by higher net financing costs related to SCE's capital spending program.
Edison International’s Parent and Other segment posted first-quarter 2017 core earnings of $0.04 per share against the year-ago loss of $0.04. The improvement reflects higher income tax benefits related to stock option exercises.
Financial Update
As of Mar 31, 2017, cash and cash equivalents were $150 million, reflecting an increase from $96 million as of Dec 31, 2016. Long-term debt was $11.66 billion, higher than the 2016-end level of $10.18 billion.
Net cash from operating activities during the first quarter was $879 million compared with $855 million in the year-ago quarter. Total capital expenditure amounted to $939 million during the first quarter, down from $951 million a year ago.
Guidance
The company reiterated its earnings guidance for 2017. Edison International expects core earnings in the band of $4.04 to $4.24 per share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.
Edison International Price and Consensus
Edison International Price and Consensus | Edison International Quote
VGM Scores
At this time, Edison International's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. 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 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than those looking for growth and momentum.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.