S&P 500 (NYSE:SPY) component Edison International (NYSE:EIX) will unveil its latest earnings on Thursday, November 1, 2012. Through its subsidiaries, Edison International generates and distributes electric power and invests in infrastructure and energy assets, including renewable energy.
Edison International Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.10 per share, a decline of 16% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.17. Between one and three months ago, the average estimate moved up. It has dropped from $1.18 during the last month. Analysts are projecting profit to rise by 27.3% compared to last year’s $2.34.
Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting profit of 32 cents per share against an estimate of net income of 33 cents per share. The quarter before that, it missed forecasts by 9 cents.
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A Look Back: In the second quarter, profit fell 49.2% to $97 million (22 cents a share) from $191 million (54 cents a share) the year earlier, missing analyst expectations. Revenue rose 2.5% to $3.06 billion from $2.98 billion.
Wall St. Revenue Expectations: Analysts predict a decline of 8.5% in revenue from the year-earlier quarter to $3.64 billion.
Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had risen $2.76 (6.3%), from $43.81 to $46.57. The stock price saw one of its best stretches over the last year between September 27, 2012 and October 5, 2012, when shares rose for seven straight days, increasing 3.9% (+$1.79) over that span. It saw one of its worst periods between December 29, 2011 and January 9, 2012 when shares fell for seven straight days, dropping 2.8% (-$1.15) over that span.
On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 2.7% in the first quarter before climbing again in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.05 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.28 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.9% to $4.22 billion while assets decreased 5.9% to $4.44 billion.
Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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