Core Viewpoint - Investors in the Utility - Electric Power sector should consider Edison International (EIX) and Pinnacle West (PNW) for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Estimates - Edison International has a Zacks Rank of 2 (Buy), while Pinnacle West has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for EIX [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EIX is likely experiencing an improvement in its earnings outlook compared to PNW [3] Group 2: Valuation Metrics - EIX has a forward P/E ratio of 9.12, significantly lower than PNW's forward P/E of 20.71, indicating that EIX may be undervalued [5] - The PEG ratio for EIX is 1.30, while PNW's PEG ratio is 9.77, further suggesting that EIX is more attractive in terms of expected earnings growth relative to its price [5] - EIX's P/B ratio is 1.23 compared to PNW's P/B of 1.63, reinforcing the notion that EIX is undervalued relative to its book value [6] - These metrics contribute to EIX's Value grade of A and PNW's Value grade of C, indicating a stronger value proposition for EIX [6]

Core Viewpoint - Edison International (EIX) shows potential for upside with a mean price target of $69.97, indicating a 27.5% increase from the current price of $54.88 [1] Price Targets and Analyst Consensus - The average price target consists of 16 estimates ranging from a low of $50.50 to a high of $86, with a standard deviation of $10.02, suggesting variability in analyst predictions [2] - The lowest estimate indicates an 8% decline, while the highest suggests a 56.7% upside, highlighting the range of opinions among analysts [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction, which can be a starting point for further research [9] Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about EIX's earnings prospects, as evidenced by a trend of higher EPS estimate revisions [11] - The Zacks Consensus Estimate for the current year has risen by 2% over the past month, with three estimates increasing and one decreasing [12] - EIX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13]

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Core Viewpoint - Edison International (EIX) reported strong first-quarter 2025 adjusted earnings of $1.37 per share, exceeding expectations and showing significant year-over-year growth [1][2] Financial Performance - Adjusted earnings per share of $1.37 surpassed the Zacks Consensus Estimate of $1.21 by 13.2% and increased 21.2% from $1.13 in the same quarter last year [1] - GAAP earnings were reported at $3.73 per share, a recovery from a GAAP loss of 3 cents per share in Q1 2024 [1] - Total operating revenues for Q1 2025 were $3.81 billion, missing the Zacks Consensus Estimate of $4.14 billion by 7.8% and down 6.5% from $4.08 billion in the prior year [3] Operational Highlights - Total operating expenses decreased significantly by 56.2% year over year to $1.68 billion [4] - Purchased power and fuel costs rose by 3.9%, while depreciation and amortization expenses increased by 5.7% [4] - Operating income for Q1 2025 was $2.13 billion, a substantial increase from $0.25 billion in the previous year [5] Segment Results - Southern California Edison reported adjusted earnings of $1.61 per share, up from $1.33 in the year-ago quarter, benefiting from interest expense related to cost recoveries [6] - The Edison International Parent and Other segment incurred an adjusted loss of 24 cents per share [6] Financial Update - As of March 31, 2025, cash and cash equivalents were $1.32 billion, a significant increase from $0.19 billion at the end of 2024 [7] - Long-term debt rose to $35.39 billion from $33.53 billion at the end of 2024 [7] - Net cash flow from operating activities was $1.22 billion, compared to $1.04 billion in the prior-year period [7] Capital Expenditures - Total capital expenditures for Q1 2025 were $1.41 billion, up from $1.28 billion in the same period last year [8] Guidance - The company reiterated its 2025 earnings outlook, expecting earnings in the range of $5.94 to $6.34 per share, with the Zacks Consensus Estimate currently at $6.02 per share [9][10] Zacks Rank - Edison International currently holds a Zacks Rank 2 (Buy) [11]

Core Viewpoint - Edison International (EIX) is currently considered undervalued based on various financial metrics, making it an attractive option for value investors [4][9]. Valuation Metrics - EIX has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investing [4][3]. - The stock's P/E ratio is 9.77, significantly lower than the industry average of 14.27, suggesting it is undervalued [4]. - EIX's PEG ratio stands at 1.16, compared to the industry average of 1.81, indicating favorable growth expectations relative to its price [5]. - The P/B ratio for EIX is 1.40, which is attractive compared to the industry's average P/B of 2.27 [6]. - EIX has a P/S ratio of 1.3, significantly lower than the industry average of 2.35, reinforcing its undervalued status [7]. - The P/CF ratio for EIX is 4.78, well below the industry average of 10.57, highlighting its strong cash flow outlook [8].

Financial Performance - Edison International's Q1 2025 GAAP EPS was $3.73[6], while Core EPS was $1.37[6] - The company reaffirmed its 2025 Core EPS guidance of $5.94–6.34[6] - Edison International anticipates a 5–7% Core EPS Compound Annual Growth Rate (CAGR) from 2025 to 2028, projecting EPS of $6.74–7.14 in 2028[5] Regulatory and Capital Investments - The company has a capital program of $38–43 billion for 2023–2028, supporting a projected rate base growth of approximately 6–8%[25] - SCE filed for a 2026 Cost of Capital, requesting an ROE of 11.75% compared to the 2025 authorized ROE of 10.33%[11] - SCE's 2025 General Rate Case (GRC) requests annual revenue requirement increases of approximately $1.9 billion in 2025, $670 million in 2026, $750 million in 2027, and $730 million in 2028[12] Wildfire and Legal Matters - The TKM settlement was approved, leading to a one-time Core EPS impact of approximately $0.30 and an annual interest expense reduction of $0.14[31] - SCE is pursuing cost recovery for the Woolsey fire, with a request of approximately $5.4 billion[28] - Approximately $1.6 billion will be recovered through securitization of AB 1054 capital expenditures[34]

Financial Data and Key Metrics Changes - Edison International reported core earnings per share (EPS) of $1.37 for Q1 2025, an increase from $1.13 in the same period last year [5][19] - The year-over-year comparison is noted as not particularly meaningful due to the lack of a decision in the 2025 general rate case [6][19] - The company remains confident in meeting its 2025 EPS guidance and delivering a 5% to 7% core EPS compound annual growth rate (CAGR) through 2028 [6][25] Business Line Data and Key Metrics Changes - SCE's first quarter EPS includes approximately $0.30 associated with the TKM settlement approval, partially offset by higher interest expenses at EIX Parent and Other [20] - The utility's full general rate case request includes about $1.4 billion of annual capital spending on wildfire mitigation and hardening an additional 1,800 miles of overhead distribution infrastructure [14] Market Data and Key Metrics Changes - SCE's proposed schedule for the cost of capital application includes a return on equity (ROE) request of 11.75%, with a proposed decision expected in November [21] - The utility plans to file an application for its advanced metering infrastructure program to replace its smart meter fleet, addressing technology obsolescence [24] Company Strategy and Development Direction - The company is focused on rebuilding wildfire-impacted areas and enhancing the resilience of its electrical distribution infrastructure [6][7] - Edison International is engaging with legislators to support community safety and enhance California's regulatory framework [11] - The company is optimistic about the regulatory environment, as indicated by the CPUC's approval of the TKM settlement agreement [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing investigation into the Eaton fire and the potential for material losses, emphasizing transparency throughout the process [8][10] - The company is confident in its ability to manage liabilities through the wildfire fund and believes it can demonstrate prudency in its operations [66][83] - Management expresses optimism regarding the legislative discussions around wildfire legislation and the need for action [42][91] Other Important Information - The company has launched a new webpage to address misinformation regarding the Eaton fire [9] - Recent leadership changes include the retirement of board member Vanessa Chang and the appointment of Shonda Nwamu as the new General Counsel [15][16] Q&A Session Summary Question: What drove the new material loss disclosure? - Management indicated that the ongoing investigation and the absence of evidence pointing to another source of ignition warranted the disclosure of probable losses [32][66] Question: How will potential liabilities from the Eaton fire impact financing plans? - Management explained that the wildfire fund would be accessed to cover claims, reducing the need for debt issuance compared to previous incidents [36][38] Question: What is the status of wildfire legislation in California? - Management expressed confidence in the engagement of the governor's office and legislative leaders, noting the complexity of the issue [41][42] Question: How does the Moody's risk management model reflect wildfire risk? - Management clarified that the model incorporates various risk areas and that grid hardening efforts have contributed to risk reduction [44][46] Question: What are the considerations for accessing the wildfire fund? - Management stated that the process for accessing the fund is streamlined, with initial claims covered by customer-funded self-insurance before tapping into the fund [108] Question: Are there any updates on the investigation into the Eaton fire? - Management confirmed that no estimates could be provided regarding the investigation timeline, emphasizing the complexity of the situation [76][78] Question: Will the nature of lawsuits affect recovery from the wildfire fund? - Management assured that the wildfire fund is available for damage claims, and there are no limitations on the types of claims that can be paid [83]

Edison International (NYSE:EIX) Q1 2025 Earnings Conference Call April 29, 2025 4:30 PM ET Company Participants Sam Ramraj - VP, IR Pedro Pizarro - President, CEO & Director Maria Rigatti - EVP & CFO Steve Powell - President, CEO & Director, Southern California Edison Conference Call Participants Nick Campanella - Barclays Michael Lonegan - Evercore Carly Davenport - Goldman Sachs Paul Zimbardo - Jefferies Richard Sunderland - JPMorgan Gregg Orrill - UBS Anthony Crowdell - Mizuho David Arcaro - Morgan Stanl ...

Edison International (EIX) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.22%. A quarter ago, it was expected that this electric power provider would post earnings of $1.08 per share when it actually produced earnings of $1.05, delivering a surprise of -2.78%.Over the last four qu ...

Financial Data and Key Metrics Changes - Edison International reported core earnings per share (EPS) of $1.37 for Q1 2025, an increase from $1.13 in the same period last year [5][19] - The year-over-year comparison is noted as not particularly meaningful due to the lack of a decision in the 2025 general rate case [6][19] - The company remains confident in meeting its 2025 EPS guidance and achieving a core EPS compound annual growth rate (CAGR) of 5% to 7% through 2028 [6][25] Business Line Data and Key Metrics Changes - SCE's first quarter EPS includes approximately $0.30 associated with the TKM settlement approval, offset by higher interest expenses at EIX Parent and Other [20] - The utility's full general rate case (GRC) request includes about $1.4 billion of annual capital spending on wildfire mitigation and hardening an additional 1,800 miles of overhead distribution infrastructure [14] Market Data and Key Metrics Changes - The company is actively engaging with legislators and the governor's office to enhance California's regulatory framework regarding wildfire safety [11] - SCE's proposed cost of capital application includes a request for a return on equity (ROE) of 11.75%, with a proposed decision expected in November [21] Company Strategy and Development Direction - The company is focused on rebuilding wildfire-impacted areas and enhancing the resilience of its electrical distribution infrastructure [7] - SCE plans to submit its 2026 wildfire mitigation plan in May, reflecting priorities in risk mitigation, public safety, and affordability [14] - The utility is committed to executing an integrated wildfire mitigation strategy, prioritizing grid hardening, asset inspections, and vegetation management [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment and the importance of addressing wildfire risks to restore stakeholder confidence [11] - The company is optimistic about the proposed decision timeline for the GRC and the potential for a constructive regulatory environment [13] Other Important Information - The company has launched a new webpage to address misinformation regarding the Ethan fire and its operations [9] - Significant media coverage has been noted regarding the Ethan fire, with management emphasizing transparency throughout the ongoing investigation [8] Q&A Session Summary Question: What drove the new material loss disclosure? - Management indicated that the ongoing investigation and the lack of evidence pointing to another source of ignition warranted the disclosure of probable losses [32] Question: How will potential liabilities from the Eaton fire impact financing plans? - Management explained that the wildfire fund would be accessed to cover claims, reducing the need for debt issuance compared to previous incidents [36][38] Question: What is the status of wildfire legislation in California? - Management expressed confidence in legislative engagement but noted that discussions are still in early stages [41][42] Question: How does the Moody's risk management model reflect wildfire risk? - Management confirmed that grid hardening efforts have significantly reduced the probability of catastrophic wildfires, but ongoing evaluations will continue [44][46] Question: What are the considerations for accessing the wildfire fund? - Management clarified that the process for accessing the fund is streamlined, with initial claims covered by customer-funded self-insurance before tapping into the fund [110] Question: Are there any updates on the investigation into the Eaton fire? - Management stated that no estimates could be provided regarding the investigation timeline, and they are still assessing potential ignition sources [76][78]