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Edison International's (EIX) Q2 Earnings In Line, Sales Beat

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Edison International (EIX - Free Report) reported second-quarter 2017 earnings per share (EPS) of 85 cents from continuing operations. The figure came in line with the Zacks Consensus Estimate. Reported earnings, however, fell short of a penny from the year-ago earnings figure.  

Total Revenue

Edison International's second-quarter revenues came in at $2,965 million, beating the Zacks Consensus Estimate of $2,817 million by 5.3%. Also, quarterly revenues improved 6.8% from the year-ago figure of $2,777 million.

Operational Highlights

In the reported quarter, total operating expenses increased 4.2% to $2,496 million, mainly on account of higher purchased power and fuel (10.4%) expenses, as well as depreciation, decommissioning and amortization expenses (1.4%).

On the other hand, operation and maintenance costs dropped 1.9%, while Impairment and other charges declined 23.8%.

Operating income was up 23.1% to $469 million in the reported quarter.

Interest expenses were $159 million, higher than $144 million reported in the second quarter of 2016.

Edison International Price, Consensus and EPS Surprise

Edison International Price, Consensus and EPS Surprise | Edison International Quote

Segment Results

Southern California Edison’s (SCE) second-quarter earnings were 94 cents per share compared with the year-ago earnings of 98 cents. Earnings in the reported quarter declined primarily on account of a prior reduction in California Public Utilities Commission (CPUC) revenue.

Parent and Other segment posted second-quarter 2017 loss of 9 cents per share compared with the year-ago loss of 11 cents. The improvement reflects higher income tax benefits related to stock option exercises as well as the 2017 settlement of federal income tax audits for 2007–2012.

Financial Update

As of Jun 30, 2017, cash and cash equivalents were $98 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 $1,433 million, compared with $1,432 million in the year-ago quarter. Total capital expenditure amounted to $1,749 million during the second quarter, down from $1,828 million a year ago.

Guidance

The company raised its earnings guidance for 2017. Edison International currently expects core earnings in the band of $4.13–$4.33 per share for 2017, up from the earlier guidance range of $4.04–$4.24 per share.

Zacks Rank

Edison International currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share (EPS) of 86 cents in the second quarter of 2017 surpassed the Zacks Consensus Estimate of 79 cents by 8.9%. Earnings were also up 30.3% from 66 cents reported in the year-ago quarter.

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.

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