Edison International (EIX - Free Report) is set to release first-quarter 2019 results on Apr 30, after the market closes.
In the last reported quarter, the company witnessed a negative earnings surprise of 6.00%. However, the company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 1.10%.
Let’s see how things are shaping up prior to this announcement.
Factors Under Consideration
During the first quarter, major parts of California experienced below-normal temperatures along with witnessing the coldest February in the last five decades. This, in turn, should result in higher household expenditure on heating, which is expected to have a favorable impact on the company’s revenues in the to-be-reported quarter.
In line with this, the Zacks Consensus Estimate for first-quarter revenues of $2.65 billion suggests a rise of 3.5% from the year-ago quarter’s reported figure.
Management expects that the approval of the Z-factor filing related to recovery of previously-incurred wildfire insurance premiums will lead to a benefit of approximately 5 cents per share in the first quarter of 2019. This along with the expected revenue growth should drive the company’s bottom line in the to-be-reported quarter.
In line with this, the Zacks Consensus Estimate for first-quarter earnings is pegged at 88 cents, which implies 10% rise from the figure reported in the year-ago quarter.
Our proven model does not conclusively show that Edison International is likely to beat estimates in the first 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.
Earnings ESP: Edison International has an Earnings ESP of -3.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #4 (Sell), further making surprise prediction difficult.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into earnings announcement, especially when the company is seeing negative estimate revisions.
Edison International Price and EPS Surprise
Stocks to Consider
Here are a few players from the Utilities sector that have the right combination of elements to post an earnings beat this quarter.
Entergy Corp. (ETR - Free Report) has an Earnings ESP of +3.99% and a Zacks Rank #2. The company is scheduled to report first- quarter results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pinnacle West Capital Corp. (PNW - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to report first-quarter results on May 1.
Consolidated Edison Inc. (ED - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is scheduled to report first- quarter results on May 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>