Edison International Set to Report Q1 Earnings: What's in the Cards?

Edison International EIX is scheduled to release its first-quarter 2025 results on April 29, after market close.

The company delivered a negative earnings surprise of 2.78% in the last reported quarter. However, EIX holds a four-quarter average earnings surprise of 5.73%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider Ahead of EIX’s Q1 Results

Edison International’s service territories saw above-normal weather patterns for the majority of the first quarter, though some of its territories witnessed average temperature patterns in March. The above-normal weather pattern is likely to have hurt electricity demand from EIX’s customers for heating purposes this winter, while the average temperature pattern might have aided the same. So, the overall impact of weather on the company’s quarterly revenues can be expected to have been moderate.

Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

The destructive Palisades and Eaton wildfires that affected huge parts of California this January are likely to have caused outages for some of EIX’s customers and damaged its infrastructure. Such outages are likely to have hurt the company’s overall top-line performance.

In February, heavy rainfall, landslides and floods hit EIX’s service areas. These, along with the increased operating expenses projected for the restoration of its infrastructure in response to the aforementioned wildfire and significant charges for wildfire-related claims, net of insurance recoveries, are expected to have hurt its first-quarter earnings to some extent.

However, strong rate base growth, solid sales growth expectations and the company’s ongoing wildfire cost mitigation efforts are likely to have boosted Edison International’s overall bottom-line performance in the first quarter.

EIX’s Q1 Expectations

The Zacks Consensus Estimate for EIX’s sales is pegged at $4.15 billion, which indicates an increase of 1.8% from the year-ago number.

The Zacks Consensus Estimate for earnings is pegged at $1.37 per share, which calls for a rise of 21.2% from the prior-year quarter.

What the Zacks Model Unveils for EIX

Our proven model does not conclusively predict an earnings beat for EIX this time. 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 not the case here, as you will see below.

Earnings ESP: EIX has an Earnings ESP of -15.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, EIX carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Below, we have mentioned players from the same industry that have the right combination of elements to beat earnings in the upcoming releases:

Ameren Corporation AEE is set to report first-quarter 2025 earnings on May 1, after market close. It has an Earnings ESP of +3.78% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for its first-quarter sales is pegged at $1.98 billion, which indicates a 9.2% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at $1.04 per share, which calls for year-over-year growth of 6.1%.

Exelon Corporation EXC is slated to report its first-quarter 2025 results on May 1, before market open. It has an Earnings ESP of +5.83% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for EXC’s first-quarter sales is pegged at $6.36 billion, which indicates a 5.3% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at 78 cents per share, which suggests year-over-year growth of 13%.

American Electric Power AEP is set to report first-quarter 2025 earnings on May 6, before market open. It has an Earnings ESP of +15.17% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for first-quarter sales is pegged at $5.35 billion, which indicates a 7% improvement from the year-ago quarter’s figure. The consensus estimate for first-quarter earnings stands at $1.75 per share, which implies year-over-year growth of 37.8%.

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

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