Based in Rosemead, California, Edison International (EIX) generates and distributes electric power to residential, commercial, industrial, public authorities, agricultural, and other sectors. Valued at a market cap of $33 billion, the company also provides integrated decarbonization and energy solutions. It is scheduled to announce its fiscal Q3 earnings results after the market closes on Tuesday, Oct. 29.
Ahead of this event, analysts expect the utility company to report a profit of $1.43 per share, up 3.6% from $1.38 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
In Q2, the company’s adjusted EPS of $1.22 outpaced the consensus estimates by 16.2% and increased by 20.8% from a year ago. The results were primarily driven by robust growth in Southern California Edison’s core EPS, mainly fueled by higher revenue authorized in Track 4 of SCE’s 2021 General Rate Case.
For fiscal 2024, analysts expect EIX to report an EPS of $4.97, up 4.4% from $4.76 in fiscal 2023. Moreover, EPS is expected to increase 13.7% year-over-year to $5.65 in fiscal 2025.
Shares of EIX have gained 20.1% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 22.7% rise and the Utilities Select Sector SPDR Fund’s (XLU) 28.4% return over the same period.
Shares of EIX gained 2.7% after its Q2 earnings release on Jul. 25. Along with its adjusted EPS, its revenue of $4.34 billion surpassed Wall Street estimates of $4.03 billion and increased 9.6% from a year ago.
Analysts' consensus view on Edison International’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine recommend a "Strong Buy," one suggests a "Moderate Buy," six indicate a “Hold,” and one suggests a “Strong Sell.” This configuration is more bullish than three months ago, with eight analysts suggesting a "Strong Buy."
The average analyst price target for EIX is $88.50, indicating a 3.1% potential upside from the current levels.
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