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What's in Store for Edison International (EIX) Q4 Earnings?

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Edison International (EIX - Free Report) is set to release fourth-quarter and full year 2018 results on Feb 28, after the market closes.

In the last reported quarter, the company witnessed a positive earnings surprise of 19.08%. Moreover, it surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 7.17%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

During the fourth quarter, major parts of northern and southern California took a strong hit arising from two large-scale wildfires. As a result of such devastation, Edison International’s revenues are likely to witness a decline in the to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for its fourth-quarter revenues of $2.90 billion represents a decline of 9.9% on a year-over-year basis.

In the third quarter, higher total expenses dented Edison International’s core earnings. Expenses primarily increased due to higher wildfire insurance premiums. In line with this, the wildfires that took place in the fourth quarter can be expected to hurt the company’s bottom-line results in the to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.00, which reflects 9.1% year-over-year decline.

Edison International Price and EPS Surprise

 

Edison International Price and EPS Surprise | Edison International Quote

 

What the Zacks Model Unveils

Our proven model does not conclusively show that Edison International is likely to beat estimates in the fourth 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, and here the case is not that.

Earnings ESP: Edison International has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Recent Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2018 operating earnings per share (EPS) of 72 cents, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.49 per share, which fell short of the Zacks Consensus Estimate of $1.51 by 1.3%.

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2018 operating earnings of 42 cents per share, in line with the Zacks Consensus Estimate.

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