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Edison International's (EIX) Q1 Earnings Miss, Revenues Beat

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Edison International (EIX - Free Report) reported first-quarter 2018 adjusted earnings per share (EPS) of 80 cents from continuing operations, which missed the Zacks Consensus Estimate of 90 cents by 11.1%.

Excluding one-time items, the company reported GAAP earnings of 67 cents per share, reflecting a decline of 39.6% from the year-ago quarter’s earnings of $1.11 per share.

Total Revenues

Edison International's first-quarter 2018 revenues were $2,564 million, beating the Zacks Consensus Estimate of $2,459 million by 4.3%. The figure was up 4.1% from the year-ago quarter’s tally of $2,463 million.

 

Edison International Price, Consensus and EPS Surprise

 

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

 

Operational Highlights

In the reported quarter, total operating expenses increased 12.1% to $2,234 million, primarily on account of a massive increase in impairment and other charges. Also higher purchasing power and fuel expenses (18.1%), operation and maintenance expenses (11.8%) as well as property and other taxes (7%) led to increased operating expenses.

Operating income was $330 million in the reported quarter, down 30% from the year-ago quarter’s figure of $471 million.

Interest expenses were $170 million in the quarter, higher than $152 million in the prior-year quarter.

Segment Results

Southern California Edison’s (SCE) first-quarter core earnings were 88 cents per share compared with $1.07 a year ago. The bottom line fell due to the cost of capital decision on the GRC revenue July 2017, higher operation & maintenance expenses and higher net financing costs.

Parent and other segments reported core loss of 8 cents per share, compared to the year-ago quarter’s earnings of 4 cents.

Financial Update

As of Mar 31, 2018, cash and cash equivalents were $105 million, reflecting a significant decline from $1,091 million of Dec 31, 2017. Long-term debt was $13.4 billion, higher than $11.6 billion of Dec 31, 2017.

Net cash from operating activities as of Mar 31, 2018 was $859 million, compared with $884 million in the prior-year quarter. Total capital expenditure amounted to $1,137 million as of Mar 31, 2018, down $944 million from the prior-year quarter.

Guidance

After the final decision from California Public Utilities Commission on Southern California Edison 2018 GRC, the company will issue the 2018 earnings guidance.

Zacks Rank

Edison International carries a Zacks Rank #4 (Sell).

Peer Releases

FirstEnergy Corporation (FE - Free Report) reported first-quarter 2018 operating earnings of 67 cents per share, which lagged the Zacks Consensus Estimate of 68 cents by 1.5%. It carries a Zacks Rank #3 (Hold),

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2018 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.78 by 8.9%. The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DTE Energy (DTE - Free Report) reported first-quarter 2018 operating earnings per share of $1.91, which beat the Zacks Consensus Estimate of $1.89 by 1.06%. It has a Zacks Rank #4.

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