Edison International EIX reported second-quarter 2015 results wherein its adjusted earnings of $1.15 per share came in ahead of the Zacks Consensus Estimate of 81 cents by 42%. The quarterly number grew 7.4% from $1.08 a year ago.

Total Revenues

Edison International's second-quarter revenues were $2,908 million, lagging the Zacks Consensus Estimate of $3,115 million by 6.6%. Quarterly revenues were also lower than the year-ago figure of $3,016 million by 3.6%.

Operational Highlights

In the reported quarter, total operating expenses decreased 2.3% to $2,384 million on account of lower purchased power and fuel expenses, partially offset by higher depreciation and amortization expenses, operations and maintenance expenses and property and other taxes.

Total input cost including fuel and power purchase was $1,078 million in the second quarter, down 13% from $1,239 million in the year-ago period. Total operations and maintenance expenses increased 3.9% year over year to $743 million.

Operating income was down 8.9% year over year to $524 million in the reported quarter.

Interest expenses were $138 million compared with $139 million in the second quarter of 2014.

Segment Results

Southern California Edison’s (“SCE”) second-quarter adjusted earnings were $1.18 per share, up 6.3% from the year-ago figure. Earnings in the reported quarter improved owing to a 31 cent tax benefit from revisions to liabilities for uncertain tax positions. Additionally, earnings got a boost from higher Federal Energy Regulatory Commission or FERC-related revenue from rate base growth and higher earnings on funds used during construction.

Edison International Parent and Other’s second-quarter 2015 core loss of 2 cents per share was narrower than the year-ago quarter due to lower corporate expenses.

Financial Update

As of Jun 31, 2015, cash and cash equivalents were $139 million, up from $132 million as of Dec 31, 2014. Long-term debt was $11,265 million, higher than the 2014-end level of $10,234 million.

Net cash from operating activities during the first half of 2015 was $1,768 million compared with $608 million a year ago. Total capital expenditure amounted to $2,197 million during the six-month period, up 18.4% from $1,856 million in the year-ago period.

Guidance

The company has not provided any guidance for 2015 and is awaiting a decision on the SCE 2015 General Rate Case or GRC from the California Public Utilities Commission (CPUC).

Nevertheless, management stated that it expects rate base growth of 7% to 9% over the 2015 to 2017 time frame.

The company lowered its 2016–2017 capital expenditure forecast at SCE by $325 million from the prior range of $11.5 billion to $13.1 billion, including $3.6 billion to $4.1 billion for 2015. The downward revision was due to the Coolwater-Lugo project suspension and other FERC project adjustments.

This June, the U.S. government declared that it was investigating a unit of Edison International of whether the company has violated labor and immigration laws by replacing American workers with foreigners on temporary work visas.

Other Utility Releases

PG&E Corporation’s PCG adjusted operating earnings per share of 91 cents in the second quarter of 2015 outpaced the Zacks Consensus Estimate of 77 cents by 18.2%. The reported figure also surged 31.9% from the year-ago earnings.

CMS Energy Corp. CMS reported second-quarter 2015 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 33 cents by 24.2%. Quarterly earnings also declined 16.7% from the year-ago figure primarily due to lower revenues.

American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.

Zacks Rank

Edison International presently carries a Zacks Rank #3 (Hold).

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