Edison International (EIX) reported fourth-quarter 2024 adjusted earnings of $1.05 per share, which missed the Zacks Consensus Estimate of $1.08 by 2.8%. The bottom line also decreased 18% from $1.28 in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company reported GAAP earnings of 88 cents per share compared with 99 cents recorded in the fourth quarter of 2023.The company reported 2024 adjusted earnings of $4.93 per share, which were much higher than the ...

FOURTH-QUARTER 2024 FINANCIAL RESULTS FEBRUARY 27, 2025 Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could diff ...

Edison International (NYSE:EIX) Q4 2024 Earnings Conference Call February 27, 2025 4:30 PM ET Company Participants Sam Ramraj - VP, IR Pedro Pizarro - President, CEO & Director Maria Rigatti - EVP & CFO Steven Powell - President, CEO & Director, Southern California Edison Conference Call Participants Nick Campanella - Barclays Michael Lonegan - Evercore Paul Zimbardo - Jefferies Steve Fleishman - Wolfe Research Ryan Levine - Citi Shar Pourreza - Guggenheim Konstantin Lednev - Guggenheim Anthony Crowdell - M ...

Core Viewpoint - Edison International reported quarterly earnings of $1.05 per share, missing the Zacks Consensus Estimate of $1.08 per share, and down from $1.28 per share a year ago, indicating an earnings surprise of -2.78% [1][2] Financial Performance - The company posted revenues of $3.98 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.86%, compared to $3.71 billion in the same quarter last year [2] - Over the last four quarters, Edison International has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Edison International shares have declined approximately 34.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $4.24 billion, and for the current fiscal year, it is $5.76 on revenues of $17.94 billion [7] Industry Outlook - The Utility - Electric Power industry, to which Edison International belongs, is currently ranked in the bottom 49% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Edison International's stock performance [5][6]

Financial Performance - Edison International reported a loss from operations of $X million for the year ended December 31, 2024, compared to a loss of $Y million in 2023, indicating a Z% change year-over-year[12] - Edison International's net income for 2024 was $1,284 million, an increase of $87 million compared to $1,197 million in 2023[26] - SCE's core earnings increased by $97 million to $2,232 million in 2024, driven by higher revenue authorized in Track 4 and an increase in the authorized rate of return[27] - Edison International's core earnings for 2024 were $1,900 million, up from $1,825 million in 2023, reflecting a $75 million increase[26] - SCE's net income for 2024 was $1,619 million, an increase of $145 million from $1,474 million in 2023[26] - Operating income rose by $356 million to $2,996 million in 2024, compared to $2,640 million in 2023[81] - Net income available for common stock increased by $145 million to $1,619 million in 2024, compared to $1,474 million in 2023[81] Capital Expenditures and Investments - The company has excluded $1.6 billion in wildfire risk mitigation capital expenditures from the equity portion of SCE's rate base as required under California Assembly Bill 1054[12] - Edison International's capital investment plan includes a projected investment of $X billion over the next five years to enhance infrastructure and support growth initiatives[18] - Total capital expenditures for SCE were $5.7 billion in 2024, with forecasts of $26.6 billion to $31.5 billion for 2025-2028[43][44] - SCE plans to invest approximately $13 billion in infrastructure replacement between 2023 and 2028, representing about 30% of its capital plan for that period[35] - SCE expects to invest at least $2.0 billion in transmission projects by 2032, with an additional $80 million anticipated for projects by 2030[49][50] - SCE expects capital expenditures of $1.0 billion for storage projects, with approximately $800 million incurred as of December 31, 2024[132] Regulatory and Legislative Matters - The company is actively engaged in regulatory proceedings related to its 2025 General Rate Case, which aims to adjust rates based on updated cost structures and service demands[6] - Edison International is facing regulatory and legislative risks, particularly related to wildfire mitigation and compliance with environmental regulations[34] - SCE's 2025 General Rate Case (GRC) application requests a revenue requirement of approximately $10.3 billion, representing a 23% increase from the 2024 revenue requirement of $8.4 billion[37] - The CPUC approved SCE's request for interim rate recovery of $210 million, subject to refund, for wildfire-related costs[114] Wildfire Mitigation and Environmental Impact - The implementation of a customer-funded wildfire self-insurance program began on July 1, 2023, changing the treatment of wildfire claims-related losses[24] - Climate-related disasters have cost California tens of billions of dollars since 2018, with the 2025 wildfires being particularly devastating[29] - Edison International aims to achieve net-zero GHG emissions by 2045, with 46% of SCE's customer deliveries coming from carbon-free resources in 2024[31] - SCE's wildfire mitigation-related capital expenditures are forecasted to be $5.6 billion for 2025-2028, with $1.1 billion planned for 2025[47] Customer and Market Growth - The company reported a significant increase in customer accounts, with a growth rate of X% year-over-year, reflecting its expanding market presence[12] - Edison International is focusing on expanding its renewable energy portfolio, with a target of increasing renewable energy capacity by X% by 2025[5] Debt and Liquidity - The available liquidity for Southern California Edison Company is $X billion, which reflects a Y% increase compared to the previous year[16] - SCE's debt to total capitalization ratio was 0.58 to 1 as of December 31, 2024, complying with financial covenants[110] - SCE anticipates issuing additional debt for general corporate purposes and securitizing recovery of wildfire-related costs[106] - Edison International expects to issue debt to refinance $800 million of debt maturities arising in the next 12 months[153] Operational Efficiency and Cost Management - The company has implemented a new customer service system, CSRP, which aims to improve customer engagement and operational efficiency[12] - Total operating expenses decreased by $916 million to $14,551 million in 2024, compared to $13,635 million in 2023[81] - The decrease in purchased power and fuel costs was $277 million, primarily due to lower prices, partially offset by increased purchased power volume[82] Risk Management - The company faced risks related to the operation and maintenance of electrical facilities, including safety issues and the risk of wildfires[17] - SCE's ongoing internal review of the Eaton Fire is complex and may take significant time to resolve[58] - SCE believes it is probable to recover its FERC-jurisdictional wildfire and mudslide-related costs, having recorded total expected recoveries within the FERC balancing account[205] Decommissioning and Trust Funds - SCE's share of decommissioning costs for San Onofre Units 2 and 3 was recorded at $218 million in 2024 dollars and $226 million in 2023 dollars[140] - At December 31, 2024, SCE had nuclear decommissioning trust funds of $2.1 billion[145] - The updated decommissioning cost estimate for San Onofre Units 2 and 3 is $3.0 billion, with SCE's share being $2.3 billion[142]

Financial Performance - Fourth-quarter 2024 net income was $340 million, or $0.88 per share, down from $378 million, or $0.99 per share, in the same quarter last year[2]. - Adjusted fourth-quarter core earnings were $405 million, or $1.05 per share, compared to $490 million, or $1.28 per share, in the fourth quarter of the previous year[2]. - Full-year 2024 net income increased to $1,284 million, or $3.33 per share, from $1,197 million, or $3.12 per share, in 2023[6]. - Full-year adjusted core earnings rose to $1,900 million, or $4.93 per share, compared to $1,825 million, or $4.76 per share, in 2023[6]. - Basic earnings per share available to common shareholders increased to $3.33 in 2024 from $3.12 in 2023, representing a growth of 6.7%[28]. - Net income for 2024 increased to $1,546 million, up from $1,407 million in 2023, representing a growth of 9.9%[34]. Revenue and Expenses - Total operating revenue for the year ended December 31, 2024, was $17,599 million, an increase of 7.7% compared to $16,338 million in 2023[28]. - Operating income for 2024 was $2,930 million, up 11.6% from $2,627 million in 2023[28]. - Higher operation and maintenance expenses and interest expenses were the primary reasons for the decline in core EPS year-over-year[3]. - The company incurred wildfire-related claims of $652 million in 2024, slightly down from $667 million in 2023[28]. Assets and Liabilities - Total assets increased to $85,579 million in 2024, compared to $81,758 million in 2023, reflecting a growth of 4.5%[30]. - Total liabilities rose to $67,839 million in 2024, up from $63,814 million in 2023, indicating an increase of 6.3%[32]. - Edison International's total equity decreased slightly to $17,740 million in 2024 from $17,944 million in 2023[32]. Cash Flow and Investments - Net cash provided by operating activities reached $5,014 million in 2024, compared to $3,401 million in 2023, marking a significant increase of 47.5%[34]. - Long-term debt issued in 2024 was $5,256 million, slightly higher than $5,121 million in 2023[34]. - Capital expenditures for 2024 totaled $5,707 million, an increase from $5,448 million in 2023[35]. - Net cash used in investing activities was $5,536 million in 2024, compared to $5,233 million in 2023[35]. - Cash, cash equivalents, and restricted cash at the end of 2024 amounted to $684 million, up from $532 million at the end of 2023[35]. - The company reported a net increase in cash of $152 million in 2024, contrasting with a decrease of $385 million in 2023[35]. Dividends - The board declared a quarterly common stock dividend of $0.8275 per share, payable on April 30, 2025[13]. - Common stock dividends paid increased to $1,198 million in 2024 from $1,112 million in 2023[34]. - Preferred stock dividends paid decreased to $88 million in 2024 from $108 million in 2023[34]. Future Guidance - Revised 2025 core EPS guidance is set at $5.94-$6.34, reflecting the impact of the TKM settlement[7]. - The company expects core EPS growth of 5-7% from $5.84 in 2025 to a range of $6.74-$7.14 by 2028[7]. Wildfire Mitigation - The TKM settlement approved $1.6 billion of cost recovery for pre-AB 1054 wildfire expenses[7]. - Edison International continues to invest in wildfire mitigation and grid resiliency efforts following recent catastrophic wildfires[5].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Edison International due to allegations of false statements and misleading information related to the company's safety practices and wildfire risks [2][4]. Group 1: Legal Investigation and Claims - Faruqi & Faruqi, LLP is encouraging investors who suffered losses exceeding $100,000 in Edison between February 25, 2021, and February 6, 2025, to discuss their legal rights [1]. - A federal securities class action has been filed against Edison International, with a deadline of April 21, 2025, for investors to seek the role of lead plaintiff [2][6]. - The complaint alleges that Edison and its executives violated federal securities laws by making false claims about their Public Safety Power Shutoffs program, which purportedly aimed to mitigate wildfire risks [4]. Group 2: Impact on Share Prices - Following the filing of a complaint on January 13, 2025, alleging that Edison's power lines caused wildfires, Edison’s share price dropped by $7.73, approximately 11.89% [5]. - On February 6, 2025, after reports indicated that Edison's equipment may be linked to the Hurst fire, the share price fell by $1.28, or about 2.4% [5]. Group 3: Company Background - Faruqi & Faruqi, LLP is a national securities law firm with a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3].

Group 1 - A class action has been filed on behalf of all persons or entities that purchased or acquired Edison International (NYSE: EIX) securities between February 25, 2021, and February 6, 2025 [1] - The allegations include that Edison International's equipment may have been involved in the recent Eaton Canyon fire, and that the company misrepresented its Public Safety Power Shutoffs (PSPS) program [2] - The complaint claims that Edison failed to disclose that its PSPS program was ineffective in mitigating fire risks, leading to increased fire hazards and legal exposure [2] Group 2 - A fire began in Eaton Canyon on January 7, 2025, and Edison admitted that there were no operational anomalies prior to the fire, which led to a lawsuit alleging that the fires originated from Edison's power lines [3] - Following the news of the fire and the lawsuit, Edison's stock price fell nearly 12% [3] - An article published by The Wall Street Journal on February 6, 2025, indicated that Edison's equipment may have been involved in the Southern California fires, resulting in another decline in the company's stock price [4] Group 3 - Shareholders interested in participating in the class action must submit their information to the court by April 14, 2025, to serve as lead plaintiff [5] - Shareholders do not need to participate in the case to be eligible for recovery and can remain absent class members if they choose [5] - Robbins LLP operates on a contingency fee basis, meaning shareholders pay no fees or expenses [6]

Core Points - A class action lawsuit has been filed against Edison International for alleged securities fraud and unlawful business practices [2][3] - The lawsuit is related to a series of wildfires in the Los Angeles area, with claims that Edison’s power lines may have caused the fires [3][4] - Edison's stock price has experienced significant declines following news reports linking the company to the wildfires, with a drop of $4.50 (6.47%) on January 10, 2025, and a further drop of $7.73 (11.89%) on January 13, 2025 [3][4] Company and Industry Summary - The class action allows investors who purchased Edison securities during the Class Period to seek appointment as Lead Plaintiff by April 21, 2025 [2] - The firm Pomerantz LLP, known for its expertise in corporate and securities class litigation, is representing the plaintiffs in this case [6] - The lawsuit follows reports from the Wall Street Journal indicating that Edison’s equipment may be linked to the start of the Hurst fire, resulting in a stock price decline of $1.28 (2.4%) on February 6, 2025 [5]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as a complementary indicator to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [3][4] Zacks Style Scores - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F [4] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score evaluates a company's financial health and future outlook through earnings and sales projections [5] - Momentum Score assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [6] - VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [10] Stock Highlight: Edison International (EIX) - Edison International is rated 3 (Hold) with a VGM Score of A, making it a potential pick for growth investors [12] - The company forecasts a year-over-year earnings growth of 4% for the current fiscal year, supported by a Growth Style Score of B [12] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $4.95 per share, with an average earnings surprise of 7.7% [13]