ROSEMEAD, Calif. - Edison International (NYSE:EIX) reported a first-quarter adjusted earnings per share (EPS) of $1.13, falling short of the analyst estimate of $1.21.
The company's revenue for the quarter was $4.08 billion, slightly below the consensus estimate of $4.1 billion. Despite the miss, Edison International has affirmed its full-year 2024 EPS guidance of $4.75 to $5.05, against analysts' expectations of $4.96.
The company's first-quarter performance saw a year-over-year (YoY) increase in core earnings from $416 million, or $1.09 per share, to $438 million, or $1.13 per share. This improvement was primarily driven by higher revenue authorized in the latest General Rate Case and an increase in the authorized rate of return. However, these gains were partially offset by rising interest expense.
Edison International's President and CEO, Pedro J. Pizarro, expressed confidence in the company's ability to meet its long-term EPS growth targets of 5%-7% for both the 2021-2025 and 2025-2028 periods. Pizarro's optimism is based on the company's solid start to the year and the drivers that continue to support its outlook.
The first-quarter results also included a significant charge related to the 2017/2018 Wildfire/Mudslide Events. After a review, the company recorded an increase in estimated losses of $490 million, which resulted in a net after-tax charge of $333 million. This adjustment was influenced by higher-than-expected claims and settlement values stemming from the Woolsey Fire mediation program and recent adverse jury verdicts against utilities in wildfire litigation.
Pizarro commented on the challenges posed by wildfire litigation, stating, "With wildfires now a national issue, litigation outcomes outside of California are impacting the costs to resolve claims everywhere." He reiterated the company's intention to seek full recovery of all eligible costs and expressed confidence in SCE's case for cost recovery.
The company's financial outlook remains unchanged, with a reaffirmed EPS guidance for 2024. The midpoint of the guidance range, $4.90, is slightly below the analyst consensus of $4.96, indicating a conservative stance by the company in its financial projections.
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