Edison International Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Edison International (NYS: EIX) reported earnings May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Edison International met expectations on revenues and missed estimates on earnings per share.

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


Margins shrank across the board.

Revenue details
Edison International recorded revenue of $2.86 billion. The four analysts polled by S&P Capital IQ wanted to see a top line of $2.86 billion on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $2.78 billion.

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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 $0.35. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.28 for Q1 were 54% lower than the prior-year quarter's $0.61 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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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 27.1%, 400 basis points worse than the prior-year quarter. Operating margin was 11.1%, 500 basis points worse than the prior-year quarter. Net margin was 3.3%, 390 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.95 billion. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $12.61 billion. The average EPS estimate is $2.75.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 295 members out of 312 rating the stock outperform, and 17 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 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 $46.28.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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