Edison International’s (EIX) adjusted EPS of 82 cents in the first quarter of fiscal 2010 was ahead of the Zacks Consensus Estimate of 78 cents and the year-ago profit of 79 cents. The outperformance was mainly on account of higher operating results at its Edison Mission Group (“EMG”) subsidiary, partially offset by expense timing differences at Southern California Edison (“SCE”).
Operational Results
At $2.8 billion, Edison International’s revenue remained flat year over year. Of this, Electric Utility revenues contributed $2.2 billion (down 1.4% from the year-ago period), while Competitive Power Generation revenues made up the remaining $652 million (up 4.5%).
Segmental Results
The GAAP EPS of SCE in the reported quarter was 50 cents compared with 64 cents in the year-ago quarter. Core earnings were 62 cents compared with 64 cents in the year-ago quarter. This decrease was primarily due to higher operating expense, partially offset by rate base growth and higher capitalized financing costs.
SCE recorded a 12-cent non-core charge in the reported quarter to reverse previously recognized tax benefits eliminated by the federal health care legislation enacted in March 2010.
The GAAP EPS of EMG in the reported quarter was 24 cents per share compared with 14 cents in the year-ago quarter. Core earnings were 22 cents compared with 17 cents in the year-ago quarter. Core earnings improved due to higher distributions from EMG’s Doga and March Point natural gas facilities and higher trading income. These positive factors were somewhat offset by lower results from EMG’s merchant coal-fired projects. First quarter 2010 non-core items include 2 cents per share of earnings from discontinued operations, while the year-ago results included a 4 cents per share charge related to Edison Capital’s lease terminations, partially offset by a penny per share in earnings from discontinued operations.
Edison International parent company and other reported a loss of 2 cents per share, the same as that in the previous year quarter.
Financial Condition
As of March 31, 2010, Edison International had cash and cash equivalents of $1.4 billion. The company reported $599 million in cash from operating activities, compared with the year-ago figure of $686 million. Long-term debt (including current portion) increased to $11.1 billion from $10.8 billion.
Outlook
Edison International affirmed its previously announced fiscal 2010 earnings guidance of $3.15 – $3.45. This is in line with the Zacks Consensus Estimate of $3.31.
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