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Edison International Third Quarter Earnings Preview
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EIX
Edison International (NYSE:EIX) will release its third quarter earnings on Thursday, November 1, 2012. Analysts have become increasingly bearish on the company over the last month, with the consensus analyst estimate slipping from $1.18 a share to the current prediction of earnings of $1.10 a share.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Can Earnings Guidance Accurately Predict The Future?
What to Expect: This is a drop from the consensus estimate three months ago of $1.17. Analysts are projecting earnings of $2.34 per share for the fiscal year.
Revenue for the quarter is expected to be $3.64 billion, short of last year's reported figure of $3.98 billion by 8.6%. For the fiscal year, expected revenue is $12.7 billion.
Company Performance: Over the last four quarters, revenue has increased by an average 2.1%. The biggest jump was a rise of 5.1% from the year-earlier quarter in the third quarter of the last fiscal year.
A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
The stock price has risen slightly over the past quarter, from $46.18 on July 31, 2012 to its current price, $46.57. Edison's stock price is on a downward streak. The share price has fallen $1.39 since October 18, 2012.
The Competition: Through its subsidiaries, Edison International generates and distributes electric power and invests in infrastructure and energy assets, including renewable energy. Analysts are optimistic about Edison, with nine of 14 assigning it a buy rating. Buy ratings have increased slightly over the last three months.
The company's closest competitor in the electric utilities industry is FirstEnergy (FE). Analysts are more optimistic about Edison than about FirstEnergy. Only four out of 15 analysts rate the latter a buy.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Can Earnings Guidance Accurately Predict The Future?
What to Expect: This is a drop from the consensus estimate three months ago of $1.17. Analysts are projecting earnings of $2.34 per share for the fiscal year.
Revenue for the quarter is expected to be $3.64 billion, short of last year's reported figure of $3.98 billion by 8.6%. For the fiscal year, expected revenue is $12.7 billion.
Company Performance: Over the last four quarters, revenue has increased by an average 2.1%. The biggest jump was a rise of 5.1% from the year-earlier quarter in the third quarter of the last fiscal year.
The stock price has risen slightly over the past quarter, from $46.18 on July 31, 2012 to its current price, $46.57. Edison's stock price is on a downward streak. The share price has fallen $1.39 since October 18, 2012.
The Competition: Through its subsidiaries, Edison International generates and distributes electric power and invests in infrastructure and energy assets, including renewable energy. Analysts are optimistic about Edison, with nine of 14 assigning it a buy rating. Buy ratings have increased slightly over the last three months.
The company's closest competitor in the electric utilities industry is FirstEnergy (FE). Analysts are more optimistic about Edison than about FirstEnergy. Only four out of 15 analysts rate the latter a buy.
by
Investopedia Staff
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