Edison International ( EIX ) reported adjusted
earnings of 77 cents per share for the first quarter of 2013,
comfortably surpassing both the Zacks Consensus Estimate of 64
cents and the year-ago quarterly earnings of 54 cents per
share.ALLETE INC (ALE): Free Stock Analysis ReportCMS ENERGY (CMS): Free Stock Analysis ReportCALPINE CORP (CPN): Free Stock Analysis ReportEDISON INTL (EIX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
The beneficial results were partly driven by Southern California
Edison ("SCE"). It followed the implementation of rates approved
under General Rate Case ("GRC") of the California Public Utilities
Commission (CPUC) in Nov 2012.
On a reported basis, including one-time gain of 6 cents per share,
earnings came in at 83 cents per share, significantly up from 28
cents per share.
Edison International's revenue was $2,632 million, up 9% year over
year. The figure was also above the Zacks Consensus estimate by
Operations and maintenance expenses were $873 million, down 7.7%
year over year. Total operating expenses were $2,140 million, up
5.6% year over year.
Increase in operating expenses could not offset the increase in
operating revenue resulting in an operating income of $492 million,
Southern California Edison ("SCE") segment's first quarter
earnings were 78 cents per share compared with 56 cents 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
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 1 cent per share in the reported quarter versus a
loss of 2 cents in the year-ago quarter.
As of Mar 31, 2013, cash and cash equivalents were $115 million
down from $170 million as of Dec 31, 2012. Long-term debt was
$8,829 million, down from $9,231 million at the end of Dec 31,
2012. Net cash provided by operating activities were $506 million
versus $677 million in first quarter of 2012.
The company maintained its adjusted earnings per share guidance in
the range of $3.45 to $3.65 per share for 2013.
Recently, Mich.-based CMS Energy Corporation ( CMS ) announced
first-quarter 2013 earnings per share of 53 cents on both adjusted
and GAAP basis, beating the Zacks Consensus Estimate of 46 cents.
Earnings were 43.2% higher than 37 cents earned in the year-ago
Edison International presently retains a short-term Zacks Rank #3
(Hold). Stocks worth considering are ALLETE, Inc.
( ALE ) and
Calpine Corp. ( CPN ), both with a
Zacks Rank #2 (Buy).