It has been about a month since the last earnings report for Edison International (EIX). Shares have lost about 5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Edison International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Edison International's Q2 Earnings & Revenues Miss
Edison International reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%. Moreover, the bottom line declined 36.7% year over year.
Excluding adjustments, quarterly earnings came in at 85 cents per share from continuing operations compared with$1.20 in second-quarter 2019.
Edison International's second-quarter revenues totaled $2.99 billion, which missed the Zacks Consensus Estimate of $3.02 billion by approximately 1%. However, the top line improved 6.2%fromthe year-ago quarter’s figure.
In the reported quarter, total operating expenses increased 7.6% year over year to $2,487 million. Operation and maintenance costs grew28.1% year over year, while purchased power and fuel costs declined 5.9%. Meanwhile, depreciation and amortization expenses increased 52.3%.
Edison International registered an operating income of $500 million in the second quarter, in line with the year-ago quarter’s figure.
Interest expenses were $229 million, higher than $211 million incurred in the prior-year quarter.
Southern California Edison’s (SCE) second-quarter earnings were $1.10 per share compared with $1.66 a year ago.
The Parent and Other segment incurred a loss of 10 cents per share compared with the year-ago quarter’s loss of 8 cents.
As of Jun 30, 2020, Edison International's cash and cash equivalents amounted to $524 million compared with $68 million as of Dec 31, 2019. Long-term debt summed $19.24 billion, higher than the 2019-end level of $17.87 billion.
Net cash from operating activities during the first six months of 2020 was $625 million compared with $598 million in the prior-year period. Total capital expenditures amounted to$2,514 million at the end of the second quarter, up from $2,235 million a year ago.
Edison International narrowed its 2020 core operating earnings per share guidance to $4.37-$4.62. The Zacks Consensus Estimate of $4.43 lies below the midpoint of the guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
Currently, Edison International has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Edison International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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