Edison International to Release Q4 Earnings: What's in Store?

Edison International EIX is scheduled to release fourth-quarter 2025 results on Feb. 18, after market close. The company delivered an earnings surprise of 8.3% 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 Q4 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 fourth-quarter earnings are expected to have benefited from its ongoing infrastructure development and modernization programs. 

Solid revenue expectations and an increase in the authorized rate of return are likely to have boosted bottom-line growth.

Southern California Edison Company (“SCE”), a subsidiary of EIX, is expected to have begun reflecting the higher 2025 authorized base revenue requirement in the fourth quarter. Since the California Public Utilities Commission (“CPUC”) allowed the $902 million retroactive increase (for January-September 2025) to be recovered over 24 months starting Oct. 1, 2025, SCE is also expected to post incremental revenues in the fourth quarter tied to this catch-up recovery. The quarterly revenues are expected to have improved, driven by the new rate structure and the start of retroactive collections.

However, higher operating expenses are likely to have offset some of the positives in the to-be-reported quarter.

EIX’s Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.47 per share, indicating a year-over-year increase of 40%.

The Zacks Consensus Estimate for revenues is pinned at $4.38 billion, implying 9.9% growth 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 +8.65%. 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 #3. 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.

Alliant Energy LNT is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 19. It has an Earnings ESP of +0.58% and a Zacks Rank #3 at present.

LNT’s long-term (three to five years) earnings growth rate is 7.15%. The Zacks Consensus Estimate for earnings is pinned at 58 cents per share, indicating a year-over-year decrease of 17.1%.

Consolidated Edison ED is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 19. It has an Earnings ESP of +0.25% and a Zacks Rank #3 at present.

ED’s long-term earnings growth rate is 6.11%. The Zacks Consensus Estimate for earnings is pinned at 84 cents per share, indicating a year-over-year decrease of 14.3%.

AES Corporation AES is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 26. It has an Earnings ESP of +0.54% and a Zacks Rank #2 at present.

AES’ long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for earnings is pinned at 62 cents per share, which implies a year-over-year increase of 14.8%. 

 

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This article originally published on Zacks Investment Research (zacks.com).

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