Edison International Earnings: Two Straight Quarters of Profit Broken by a Loss

S&P 500 (NYSE:SPY) component Edison International (NYSE:EIX) swung to a loss in the fourth quarter, missing analysts’ forecast. Through its subsidiaries, Edison International generates and distributes electric power and invests in infrastructure and energy assets, including renewable energy.

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Edison International Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $824 million ($2.57 per diluted share) in the quarter. The electric utilities company had net income of $178 million or 51 cents per share in the year-earlier quarter.

Revenue: Fell 1.8% to $3.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Edison International fell short of the mean analyst estimate of 45 cents per share. It fell short of the average revenue estimate of $3.18 billion.

Quoting Management: “For 2011, Edison International posted core earnings above its earnings guidance range and above Street consensus, although we reported a full-year loss due to impairment charges at our competitive generation subsidiary, EMG,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continued to contribute strong earnings growth from its ongoing capital investment program. Given the challenging market conditions facing EMG, we have taken important steps at EMG to preserve and enhance liquidity.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 6 cents, and in the second quarter, it was ahead by 3 cents.

Last quarter’s drop in revenue breaks a two-quarter streak of revenue increases. Revenue rose 5.1% in the third quarter and 8.8% in the second quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 43 cents per share, down from 47 cents ninety days ago. The average estimate for the fiscal year is $2.91 per share, falling from $2.92 thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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