EIX Beats EPS, Misses Revenue - Analyst Blog
March 01 2012 - 3:00AM
Zacks
EdisonInternational (EIX)
reported earnings of 75 cents per share for the fourth quarter of
2011, beating past the Zacks Consensus Estimate of 45 cents and
year-ago quarterly earnings of 58 cents per share.
On a reported basis, including
one-time items, loss came in at $2.57 per share for the fourth
quarter versus earnings of 51 cents per share in the year-ago
quarter. The variance of $3.32 in the reported quarter between core
and reported earnings was due to impairment charges for Homer City,
three Midwest Generation facilities, and certain wind assets,
charges resulting from reduced wind development activity, and
charges from the write-off of an American Airlines aircraft lease
receivable. Also included was a benefit related to the March Point
sale.
Fiscal 2011 core earnings came in
at $3.22 per share, beating past the Zacks Consensus Estimate of
$2.91. However, fiscal 2011 earnings per share fell 26 cents versus
fiscal 2010 core earnings of $3.48 per share. On a reported basis,
the company reported fiscal 2011 loss of 11 cents per share
compared with earnings of $3.82 per share in fiscal 2010.
Revenue Update
Edison International's revenue fell
$56 million year over year to $3,013 million in the reported
quarter. Revenues also were short of the Zacks Consensus Estimate
of $3,094 million.
Fiscal 2011 revenue of $12,760
million missed the Zacks Consensus Estimate of $12,807 million.
Revenue was however greater than fiscal 2010 revenue of $12,409
million.
Fourth-Quarter Segment
Results
Southern California Edison (SCE)
segment’s fourth quarter 2011 earnings were 76 cents per share
compared with 56 cents in the fourth quarter of 2010. In the
reported quarter, earnings rose primarily due to rate base growth
and also included a 9 cent per share benefit related to cumulative
changes to deferred income taxes.
Edison Mission Group (EMG)
segment’s fourth quarter 2011 GAAP loss was $3.29 per share
compared with earnings of 3 cents per share in the fourth quarter
of 2010. Core losses were 3 cents per share compared with earnings
of 10 cents per share in the same quarter last year. Core losses
resulted from lower capacity revenues, realized energy prices, and
generation, and higher interest expense. This was partially offset
by higher trading and renewables project income.
Edison International's parent
company and other segment on a reported basis digested a fourth
quarter 2011 loss of 4 cents per share compared with a loss of 8
cents per share in the same quarter last year. Core earnings were 2
cents per share in the fourth quarter of 2011 compared with core
loss of 8 cents per share in the fourth quarter of 2010. Non-core
charges in the fourth quarter of 2011 included a 6 cent per share
consolidated deferred tax adjustment related to EMG asset
impairments.
Financial
Condition
Edison International in fiscal 2011
generated $3,906 million from operating activities compared with
$3,477 million in fiscal 2010. Cash and cash equivalents at the end
of the reported period were $1,469 million versus $1,389 million at
fiscal-end 2010. Long-term debt increased to $13,689 million
compared with $12,371 million at fiscal-end 2010.
Outlook
Based in Rosemead, California,
Edison International engages in the supply of electric energy in
central, coastal and southern California.
Edison International’s consistent
performance through its solid base of stable utility operations,
ongoing alternative energy projects, balance sheet strength, and a
relatively cheap earnings-based valuation is partially offset by
the pending decision on SCE’s 2012 General Rate Case from the
California Public Utilities Commission, and risks regarding
recovery of capital expansion costs.
Edison International currently
retains a Zacks #3 Rank (short-term Hold rating). We maintain our
long-term Neutral rating on the stock. The near-term cautious
stance is also shared by its peers like American Electric
Power Company Inc. (AEP) and Ameren
Corporation (AEE).
AMEREN CORP (AEE): Free Stock Analysis Report
AMER ELEC PWR (AEP): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
American Electric Power (NYSE:AEP)
Historical Stock Chart
From Apr 2024 to May 2024
American Electric Power (NYSE:AEP)
Historical Stock Chart
From May 2023 to May 2024