What's In Store For Edison International (EIX) Q2 Earnings?
Zacks Investment Research | Jul 22, 2019 10:59PM ET
Edison International (NYSE:EIX) is set to release second-quarter 2019 results on July 25, after the market closes.
In the last reported quarter, the company witnessed a negative earnings surprise of 28.41%. Moreover, it surpassed the Zacks Consensus Estimate in only two of the trailing four quarters, the average miss being 3.22%.
Let’s see how things are shaping up prior to this announcement.
Factors Under Consideration
During the second quarter, major parts of California experienced above average and above normal temperatures, highlighted by significantly warm weather conditions. This, in turn, should result in higher household expenditure on cooling, which could further favorably impact the company’s revenues in the upcoming quarterly results.
In line with this, the Zacks Consensus Estimate for second-quarter revenues of $3.15 billion indicates a rise of 12% from the year-ago reported figure.
In the bottom-line context, Edison International has been witnessing lower expenses on income tax and improved corporate expenses over the last couple of quarters. We expect similar trends to follow in the soon-to-be-reported quarter, which are likely to boost the company’s earnings in the process. In line with this, the Zacks Consensus Estimate for second-quarter bottom line is pegged at $1.13, suggesting a 34.5% surge from the year-earlier reported number.
However, management projects higher operating and interest expenses to mar the company’s bottom-line prospects for the Parent and Other unit. Notably, the upcoming investors’ call might highlight these headwinds.
Earnings Whispers
Our proven model does not conclusively show that Edison International is likely to beat estimates in the second quarter. This is because a stock needs to have both — a positive Original post
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