) adjusted earnings of $1.42 per share for the third quarter of
2013 were well ahead of the Zacks Consensus Estimate of $1.21 by
17.4% and the year-ago quarterly earnings of $1.00 by 42.0%.
The upside was driven by robust cost management initiatives along
with favorable tax benefits.
On a reported basis, the company registered a profit of $1.34 per
share, up by a considerable 131.0% from the year-ago number of 58
Edison International's third quarter revenue was $3,960.0
million, up 6.1% year over year. The top line also exceeded the
Zacks Consensus Estimate of $3,432.0 million by 15.4%.
Operations and maintenance expenses were down 2.2% year over year
to $971.0 million. Depreciation, decommissioning and amortization
expenses decreased 1.8% to $392.0 million from the year-earlier
level. Total operating expenses were $3,171.0 million, up almost
5.0% year over year.
Southern California Edison's (SCE) third quarter adjusted
earnings boosted 31.5% to $1.46 per share from $1.11 earned in
the year-ago quarter. The results were driven by the finalizing
of SCE's 2012 General Rate Case and tax benefits.
Edison International parent company and other segment narrowed
its quarterly loss to 4 cents per share in the reported quarter
from a loss of 11 cents in the year-ago quarter. This was mainly
due to lower consolidated state income taxes.
Effective Dec 17, 2012, Edison International no longer
consolidates the earnings and losses of Edison Mission Energy
("EME") after the voluntary petitions filed by EME for relief
under Chapter 11 of the Bankruptcy Code. EME and its subsidiaries
retain control of their assets and are authorized to operate
their businesses as debtors-in-possession under the jurisdiction
of the Bankruptcy Court.
Edison International has recorded a full impairment of the
investment in EME as a result of deconsolidation, recognition of
losses previously deferred in accumulated other comprehensive
income, a provision for losses from the EME bankruptcy, and
estimated tax impact related to the expected future tax
deconsolidation and separation of EME from Edison International.
Results for Edison Mission Energy are reported as non-core
NRG Energy Inc.
) inked an agreement with the bankrupt unregulated utility
company EME to acquire all of its assets for a purchase price of
$2.64 billion. The deal also includes purchasing Edison's equity
interest in some of its subsidiaries. The transaction is expected
to be concluded by the first quarter of 2014.
As of Sep 30, 2013, cash and cash equivalents were $610.0
million, up from $170 million as of Dec 31, 2012. Long-term debt
was $9,633.0 million (including current portion), up from $9,231
million at the end of Dec 31, 2012. Net cash provided by
operating activities during the first nine months of the year was
$2,253.0 million versus $2,158.0 million in the year-earlier
The company lifted its core earnings per share guidance to the
range of $3.60-$3.70 from the previous expectation of $3.25-$3.45
for 2013. Its improved outlook reflects new assumptions about
income taxes and lower operating and maintenance costs. It has
also updated its basic earnings to $2.50-$2.60 from its prior
target of $2.22-$2.42 per share.
Recently, utility company American Electric Power Company Inc.
(AEP) posted third quarter 2013 operating earnings of $1.10 per
share, beating the Zacks Consensus Estimate of $1.08 by 1.9%. The
quarterly figure also improved 7.8% from the year-ago profit
level of $1.02. This improved performance reflects positive
returns from the investments made in the company's regulated
Edison International presently retains a short-term Zacks Rank #4
(Sell). However, other stocks in the industry that are worth
Alliant Energy Corp
), both with a comparable Zacks Rank #2 (Buy).
CLECO CORP (CNL): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
ALLIANT ENGY CP (LNT): Free Stock Analysis
NRG ENERGY INC (NRG): Free Stock Analysis
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