Edison International Beats Estimates But Has a Big Earnings Drop

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Edison International (NYSE: EIX) reported earnings on Tuesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Edison International missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Edison International recorded revenue of $3.06 billion. The three analysts polled by S&P Capital IQ wanted to see net sales of $3.16 billion on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $2.98 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.32. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.22 for Q2 were 59% lower than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.5%, 310 basis points worse than the prior-year quarter. Operating margin was 9.3%, 370 basis points worse than the prior-year quarter. Net margin was 2.4%, 350 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.76 billion. On the bottom line, the average EPS estimate is $1.09.

Next year's average estimate for revenue is $12.70 billion. The average EPS estimate is $2.39.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 299 members rating the stock outperform and 17 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Edison International a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Edison International is outperform, with an average price target of $47.88.

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