) adjusted earnings of 79 cents per share for the second quarter
of 2013 were well ahead of the Zacks Consensus Estimate of 66
cents by 19.7% and the year-ago quarterly earnings of 56 cents by
The beneficial results were driven by a robust operating
performance from Southern California Edison ("SCE"). This was
attributable to higher authorized investment in its electric grid
infrastructure and favorable tax benefits.
On a reported basis, the company incurred a loss of 29 cents per
share compared with earnings of 22 cents in the year-ago period.
Edison International's second quarter revenue was $3,046.0
million, up 14.8% year over year. The top line also exceeded the
Zacks Consensus Estimate of $2,557.0 million by 19.1%.
Operations and maintenance expenses inched up 1.7% year over year
to $967.0 million. Total operating expenses were $2,140 million,
up 39.6% year over year.
Southern California Edison's second quarter adjusted earnings
boosted 42.4% to 84 cents per share from 59 cents earned in the
year-ago quarter. The results were driven by timing and tax
benefits from incremental repair deductions and lower operating
Effective Dec 17, 2012, Edison International no longer
consolidates the earnings and losses of Edison Mission Energy
("EME") due to EME filing voluntary petitions 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
Edison International's parent company and other segment digested
a quarterly loss of 5 cents per share in the reported quarter
versus a loss of 3 cents in the year-ago quarter.
As of Jun 30, 2013, cash and cash equivalents were $148.0
million, down from $170 million as of Dec 31, 2012. Long-term
debt was $9,630.0 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 half of the year was
$1,261.0 million versus $1,160.0 million in the year-earlier
The company maintained its core earnings per share guidance in
the range of $3.25 to $3.45 for 2013. However, it has updated its
basic earnings to $2.22 to $2.42 per share from the previous
$2.01 - $2.59 range.
Recently, diversified utility,
) posted net operating earnings of 23 cents per share in the
second quarter of 2013, a penny or 4.2% lower than the Zacks
Consensus Estimate. Earnings were however 4.5% higher than the
Edison International presently retains a short-term Zacks Rank #4
(Sell). Stocks worth considering are
Atlantic Power Corporation
Huaneng Power International, Inc.
), both with a Zacks Rank #1 (Strong Buy).
ATLANTIC PWR CP (AT): Free Stock Analysis
EDISON INTL (EIX): Free Stock Analysis Report
HUANENG POWER (HNP): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
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