) is slated to release its fourth quarter 2012 financial results
after the market bell on Feb 26, 2013. In the last reported
quarter, the electric generation and distribution company posted
a negative surprise of 26.36%. Let's see how things are shaping
up at Edison prior to this announcement.
Factors to Consider This Quarter
We believe the company's weak merchant generation fleet,
pending general rate case decision and uncertainty regarding the
approval of restarting the San Ofre nuclear unit will act as
challenges for the stock.
However, benefits accrued from sale of its remaining lease
interest in the Beaver Valley nuclear station and lower income
tax could somewhat provide a respite from the aforementioned
Our proven model does not conclusively show that Edison
International is likely to beat earnings this quarter. That is
because a stock needs to have both a positive earnings Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here.
Negative Zacks ESP
: This is because the Most Accurate estimate stands at $1.05 per
share while the Zacks Consensus Estimate is higher at $1.09,
resulting in -3.67% ESP.
Zacks Rank #3 (Hold)
: Edison's Zacks Rank #3 when combined with negative ESP makes
surprise prediction difficult. We caution investors against the
stock going into the earnings announcement, as a negative Zacks
ESP lowers the possibility of an earnings surprise.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter are as
Berry Petroleum Company
) has earnings ESP of +4.05% and carries a Zacks Rank #3
Ormat Technologies Inc.
) has earnings ESP of +50.00% and carries a Zacks Rank #2
Gran Tierra Energy Inc.
) has earnings ESP of +7.69% and carries a Zacks Rank #3
BERRY PETROLEUM (BRY): Free Stock Analysis
EDISON INTL (EIX): Free Stock Analysis Report
GRAN TIERRA EGY (GTE): Free Stock Analysis
ORMAT TECH INC (ORA): Free Stock Analysis
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