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Edison International (EIX) Q2 Earnings: What's in the Cards?
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Edison International (EIX - Free Report) is scheduled to report second-quarter 2018 earnings results on Jul 26, after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 11.11%. However, it surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with an average surprise of 3.67%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
In first-quarter 2018, the company’s earnings were negatively impacted by 15 cents per share impairment charge pertaining to the sale of SoCore Energy. Nevertheless, absence of this impairment charge due the completion of the sell-off in mid-April is expected to benefit Edison International’s second-quarter earnings. In line with this, the Zacks Consensus Estimate for second-quarter earnings of 89 cents reflects a 4.7% rise year over year.
However, higher wildfire insurance premium, which the company has been paying lately, has been pushing up its operation and maintenance costs. We may expect second-quarter results to reflect similar increased O&M expenses.
In terms of temperature prevailing in California, the state witnessed above-average temperatures at the onset of the second quarter indicating increased electric demand, while a massive wildfire outbreak in June proved detrimental to electric utilities like Edison International. Therefore, the overall forecast for the company’s top line in the soon-to-be reported quarter does not seem very impressive. Evidently, the Zacks Consensus Estimate for the company’s second-quarter revenues of $2.94 billion represents a drop of 0.7% on a year-over-year basis.
Our proven model does not show that Edison International is likely to beat earnings this quarter. This is because a stock needs to have both — 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.
Earnings ESP: Edison International has an Earnings ESP of -9.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
Other Stocks That Warrant a Look
Here are a few operators in the Utility sector that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +6.01% and a Zacks Rank of 2. The company is scheduled to report second-quarter results on Aug 3.
AES Corp. (AES - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 7.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Edison International (EIX) Q2 Earnings: What's in the Cards?
Edison International (EIX - Free Report) is scheduled to report second-quarter 2018 earnings results on Jul 26, after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 11.11%. However, it surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with an average surprise of 3.67%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
In first-quarter 2018, the company’s earnings were negatively impacted by 15 cents per share impairment charge pertaining to the sale of SoCore Energy. Nevertheless, absence of this impairment charge due the completion of the sell-off in mid-April is expected to benefit Edison International’s second-quarter earnings. In line with this, the Zacks Consensus Estimate for second-quarter earnings of 89 cents reflects a 4.7% rise year over year.
However, higher wildfire insurance premium, which the company has been paying lately, has been pushing up its operation and maintenance costs. We may expect second-quarter results to reflect similar increased O&M expenses.
In terms of temperature prevailing in California, the state witnessed above-average temperatures at the onset of the second quarter indicating increased electric demand, while a massive wildfire outbreak in June proved detrimental to electric utilities like Edison International. Therefore, the overall forecast for the company’s top line in the soon-to-be reported quarter does not seem very impressive. Evidently, the Zacks Consensus Estimate for the company’s second-quarter revenues of $2.94 billion represents a drop of 0.7% on a year-over-year basis.
Edison International Price and EPS Surprise
Edison International Price and EPS Surprise | Edison International Quote
Earnings Whispers
Our proven model does not show that Edison International is likely to beat earnings this quarter. This is because a stock needs to have both — 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.
Earnings ESP: Edison International has an Earnings ESP of -9.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
Other Stocks That Warrant a Look
Here are a few operators in the Utility sector that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
CMS Energy (CMS - Free Report) has an Earnings ESP of +11.26% and a Zacks Rank #2. The company is scheduled to report second-quarter results on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +6.01% and a Zacks Rank of 2. The company is scheduled to report second-quarter results on Aug 3.
AES Corp. (AES - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 7.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>