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Strong Investment Plan Aids Edison International's Growth

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We recently updated research report on Edison InternationalEIX , the parent holding company of Southern California Edison (SCE) primarily engaged in the business of supplying electricity to southern California. The company enjoys a strong portfolio of regulated utility assets and well-managed merchant energy operations, which present a lower risk profile than its utility-only peers.

Year to date shares of Edison International have gained 6.7% against the industry 's decline of 2.0%.

What's Driving Edison International?

Edison International boasts a solid financial position backed by strong cash generation capacity. Moreover, the company continues to show efficiency in terms of reporting a stable cash inflow through operating activities. In the first six months of 2018 net cash provided from operating activities were $1,217 million.

SCE currently intends to invest $13.7 billion between 2018 and 2020, including an allocation of approximately $4.2 billion for 2018 and $4.8 billion for 2019. Of the total expense, $12.5 billion has been allotted for traditional investment that focuses on expanding distribution and transmission facilities as well as generating more electricity.

To maximize shareholder value through the payment of regular dividends, Edison International raised annual dividend rate by 12% to $2.42 per share in Dec 2017. Management plans to increase dividend above industry average growth rate toward the target payout ratio of 45% to 55% of SCE earnings in steps over time.

However, changes in environmental rules, adverse decision of regulatory bodies may impact company's performance.

Zacks Rank & Utility Releases with Earnings Beat

Edison International carries a Zacks Rank #3 (Hold).

DTE Energy DTE , holding a Zacks Rank #2 (Buy), reported second-quarter 2018 operating earnings per share of $1.36. The figure beat the Zacks Consensus Estimate of $1.11 by 22.5%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Ameren Corp. AEE , with a Zacks Rank #2, reported second-quarter 2018 earnings of 97 cents per share from continuing operations, which surpassed the Zacks Consensus Estimate of 79 cents by 22.8%.

Algonquin Power & Utilities AQN , with a Zacks Rank #2, posted second quarter earnings of 11 cents, beating the Zacks Consensus Estimate of 9 cents by 22.2%.

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Edison International (EIX): Free Stock Analysis Report

Ameren Corporation (AEE): Free Stock Analysis Report

DTE Energy Company (DTE): Free Stock Analysis Report

Algonquin Power & Utilities Corp. (AQN): Free Stock Analysis Report

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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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