Edison International EIX is slated to report first-quarter 2023 results on May 2, after market close.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.65%.
Factors to Note
In the to-be-reported quarter, EIX’s service territories witnessed colder-than-normal temperatures, accompanied with frequent snowfall in some parts. Such a weather pattern is likely to have boosted electricity demand for heating purposes, thereby benefiting the company’s revenues.
Additionally, the positive impact of the general rate case may have boosted the company’s top line.
Edison International Price and EPS Surprise
Edison International price-eps-surprise | Edison International Quote
The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.11 billion, indicating an increase of 3.6% from the year-ago quarter’s figure.
Considering the current interest rate environment, EIX is likely to have incurred higher interest expenses. This, along with higher depreciation expense and wildfire claim payments, might have hurt its bottom line.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.04 per share, indicating a decline of 2.8% from the prior-year quarter’s reported number.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for EIX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: EIX has an Earnings ESP of +0.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Edison carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are three other utilities that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle:
Consolidated Edison ED has an Earnings ESP of +0.24% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Consolidated Edison’s first-quarter revenues is pegged at $4.09 billion, indicating growth of 0.9% from the year-ago quarter.
The same for earnings stands at $1.64 per share, indicating increase of 11.6% from the prior-year reported figure.
New Jersey Resources NJR has an Earnings ESP of +1.67% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.20 per share, indicating a decline of 11.8% from the prior-year reported figure.
The same for revenues stands at $958.4 million, indicating a 5.1% increase from the prior-year reported figure.
Brookfield Renewable Partners BEP has an Earnings ESP of +115.39% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for its first-quarter sales is pegged at $692.7 million, implying a decline of 39% from the prior-year quarter’s numbers.
BEP has a four-quarter average negative earnings surprise of 271.73%. The bottom-line estimate for Brookfield is pegged at a loss of 13 cents per share.
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