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What's in Store for Edison International (EIX) Q3 Earnings?

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Edison International (EIX - Free Report) is scheduled to release third-quarter 2019 results on Oct 29, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 37.39%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

During September, most of Edison International’s service territories experienced warmer-than-normal weather. In July and August, weather conditions were mostly dry. This indicates no notable increase in household expenditure on cooling by customers. Therefore, we expect weather to have not made any significant impact on the company’s third-quarter revenues.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $4.28 billion, which indicates a rise of 0.35% from the year-ago quarter’s reported figure.

In terms of expenses, Edison International has been witnessing higher cost of goods sold and interest expense for the last couple of years. The trend is likely to have continued in the third quarter and impacted the company’s earnings.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.55 per share, which suggests a 0.64% decline from the prior-year quarter’s reported number.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Edison International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is 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 carries a Zacks Rank #3.

Edison International Price and EPS Surprise

Stocks to Consider

Here some companies that you may consider from the same industry as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Electric Power Company (AEP - Free Report) is expected to release third-quarter results on Oct 24. It has an Earnings ESP of +2.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Company (SO - Free Report) is set to release third-quarter results on Oct 30. It has an Earnings ESP of +0.60% and sports a Zacks Rank #1.

Vistra Energy (VST - Free Report) is scheduled to release third-quarter results on Nov 5. It has an Earnings ESP of +6.55% and a Zacks Rank of 2.

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