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

Edison InternationalEIX is scheduled to report third-quarter 2018 earnings results on Oct 30, after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 2.44%. The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 4.28%.

Let's see how things are shaping up prior to the quarterly announcement.

Factors to Consider

Edison International focuses on transmission and distribution infrastructural development programs along with expansion of operations. The company did not provide any guidance due to the pending 2018 General Rate Case (GRC) decision.

In the second quarter, higher total expenses dented Edison International's core earnings. In the first half, the company's total operating expenses increased 3.2% year over year. Expenses increased due to higher wildfire insurance premiums, which are expected to mar the upcoming quarterly results.

Moreover, the Zacks Consensus Estimate for third-quarter revenues of $3.62 billion represents a drop of 1.48% on a year-over-year basis. The Zacks Consensus Estimate for third-quarter earnings per share is pegged $1.31, which reflects year-over-year drop of 8.39%.

Earnings Whispers

Our proven model does not show that Edison International is likely to beat estimates this quarter. This is because a stock needs to have - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. This is not the case here, as you will see below. You can see the complete list of today's Zacks #1 Rank stocks here.

Earnings ESP : Edison International has an Earnings ESP of -1.68%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Price and EPS Surprise

Price and EPS Surprise | Quote

Zacks Rank : Edison International carries a Zacks Rank #3, which increases the possibility of an earnings beat. However, the company's negative ESP makes surprise prediction difficult.

Conversely, we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few operators from the same industry that have the right combination of elements to post an earnings beat this quarter.

Ameren Corporation AEE is expected to release third-quarter results on Oct 31. It has an Earnings ESP of +8.65% and a Zacks Rank #1.

Dominion Energy Inc D is expected to release third-quarter results on Nov 1. It has an Earnings ESP of +1.39% and a Zacks Rank #2.

FirstEnergy Corporation FE is expected to release third-quarter results on Oct 25. It has an Earnings ESP of +0.78% and a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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