Valued at $22.8 billion by market cap, Edison International (EIX) is a leading energy company serving millions of customers across Southern California. Headquartered in Rosemead, California, the company, through its primary subsidiary, Southern California Edison, provides reliable and sustainable electric power to residential, commercial, and industrial customers. The company is set to announce its Q4 earnings on Thursday, Feb. 27.
Ahead of this event, analysts expect the utility company to report a profit of $1.07 per share, down 16.4% from $1.28 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters.
In fiscal Q3, the company’s adjusted EPS of $1.51 outpaced the consensus estimates by 8.6%. Edison International's Q3 2024 performance was driven by higher authorized revenues and an increased rate of return under SCE’s 2021 General Rate Case.
For fiscal 2024, analysts expect EIX to report an EPS of $4.94, up 3.8% from $4.76 in fiscal 2023. Moreover, EPS is expected to increase 16.4% year-over-year to $5.75 in fiscal 2025.
Edison International's shares have decreased 9.7% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 25.3% gains and the Utilities Select Sector SPDR Fund’s (XLU) 32.6% return over the same period.
On Jan. 22, Edison International dropped more than 6% after a California Superior Court judge ordered the company to provide data from the four circuits closest to the Eaton wildfire's origin and to preserve all equipment within a square mile of the fire's starting point.
Earlier, on Oct. 29, the company's shares saw a modest rise following its Q3 earnings release, with revenues of $5.2 billion exceeding estimates of $4.76 billion and reflecting a 10.6% year-over-year increase.
Analysts' consensus view on EIX stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, 10 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 when nine analysts suggested a "Strong Buy."
The average analyst price target for EIX is $83.68, indicating a 42.1% potential upside from the current levels.
