Edison International‘s (EIX) adjusted EPS of 62 cents in the second quarter of fiscal 2010 fell behind the Zacks Consensus Estimate of 68 cents by 6 cents. It also fell short of the year-ago 78 cents.
On a GAAP basis the company reported EPS of $1.05, compared to a loss of 5 cents in the year-ago quarter.
Operational Results
Edison International’s revenue fell 3.3% to $2.7 billion in the reported quarter, compared to $2.8 billion a year earlier. Revenues were short of the Zacks Consensus Estimate at $3.5 billion. Of this, Electric Utility revenues fell $26 million to $2.2 billion. Competitive power generation revenues fell $67 million to $495 million.
Segment Results
Southern California Edison’s (SCE) GAAP EPS in the reported quarter was 92 cents, compared to $1.53 in the year-ago quarter. Adjusted earnings were 75 cents, compared to 61 cents. The increase in adjusted earnings was due to lower income tax expense and higher authorized revenue to support rate base growth. This was partially offset by a higher operating expense.
Edison Mission Group’s (EMG) reported GAAP EPS was 8 cents per share, compared to a loss of $1.69 in the year-ago quarter. Adjusted losses were 10 cents per share, compared to adjusted earnings of 19 cents. The decline in earnings reflects increased coal fleet maintenance activities for scheduled plant outages, the impact of unrealized gains and losses and lower generation. In addition, second quarter 2009 results included 6 cents per share related to the sale of an interest in a leveraged lease.
Edison International’s parent company and other reported GAAP EPS of 5 cents per share, compared to 13 cents in the year-ago quarter. Adjusted losses were 3 cents per share, compared to a loss of 2 cents.
Financial Condition
Edison International reported cash and cash equivalents of $868 million at the end of the reported period from $1.7 billion at year-end fiscal 2009. The company reported $962 million in cash from operating activities at the end of the reported period, compared to $883 million. Long term debt increased to $11.1 billion at the end of the reported period from $10.4 billion at the end of fiscal 2009.
Outlook
Edison International expects its adjusted earnings guidance for fiscal 2010 to be in the range of $3.15 – $3.45. However the company increased its GAAP earnings guidance range for the period to $3.48 – $3.78 from the earlier guidance range of $3.05 – $3.35.
We maintain our market “Neutral” recommendation on this Zacks #3 Rank (‘Hold’) stock.
EDISON INTL (EIX): Free Stock Analysis Report
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