Edison International EIX is scheduled to release third-quarter 2025 results on Oct. 28, after market close. The company delivered an earnings surprise of 10.2% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors That Might Have Impacted EIX’s Q3 Performance
Edison International continues to invest heavily in grid hardening, wildfire mitigation, and renewable energy integration to support California’s clean energy goals. The company’s third-quarter earnings are expected to have benefited from its ongoing infrastructure development and modernization programs.
The TKM settlement might have resulted in a decrease in interest expenses for the company in the to-be-reported quarter, which should have improved earnings.
Over the month of July, most of Edison International’s service territories in Southern California experienced below-normal temperature patterns, leading to a reduction in cooling needs and resulting in lower electricity demand from customers. This is expected to have weighed on the company’s electricity sales volumes, thereby limiting the top-line performance during the quarter.
In addition, wildfire activity in certain parts of California likely disrupted power supply operations and caused temporary outages for some of the company’s customers. Despite Edison International's ongoing efforts to mitigate wildfires, these incidents usually have a negative impact on service reliability and increase the cost of maintenance and restoration.
The company is expected to have witnessed higher operations and maintenance expenses for restoration purposes, which must have affected its quarterly earnings.
EIX’s Q3 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.52 per share, indicating a year-over-year increase of 0.7%.
The Zacks Consensus Estimate for revenues is pinned at $5.20 billion, implying a 0.01% decline year over year.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Edison International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
Edison International Price and EPS Surprise
Edison International price-eps-surprise | Edison International Quote
Earnings ESP: The company’s Earnings ESP is +7.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Edison International carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same industry, as these too have the right combination of elements to post an earnings beat this reporting cycle.
Xcel Energy XEL is likely to come up with an earnings beat when it reports third-quarter results on Oct. 30. It has an Earnings ESP of +0.68% and a Zacks Rank #3 at present.
XEL’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for earnings is pinned at $1.33 per share, which implies a year-over-year increase of 6.4%.
Eversource Energy ES is likely to come up with an earnings beat when it reports third-quarter results on Nov. 4. It has an Earnings ESP of +5.13% and a Zacks Rank #3 at present.
ES’ long-term earnings growth rate is 5.4%. The Zacks Consensus Estimate for earnings is pinned at $1.12 per share, indicating a year-over-year decrease of 0.9%.
Alliant Energy LNT is likely to come up with an earnings beat when it reports third-quarter results on Nov. 6. It has
an Earnings ESP of +0.43% and a Zacks Rank #3 at present.
LNT’s long-term earnings growth rate is 6.57%. The Zacks Consensus Estimate for earnings is pinned at $1.17 per share, indicating a year-over-year increase of 1.7%.
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Xcel Energy Inc. (XEL): Free Stock Analysis Report Edison International (EIX): Free Stock Analysis Report Alliant Energy Corporation (LNT): Free Stock Analysis Report Eversource Energy (ES): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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