Read Zacks_Analysts' blog in RSS
March 1, 2010
Share ThisOperational Results
Edison International’s revenue fell to $3.1 billion in the reported quarter compared to $3.2 billion in the year-ago quarter. Of this, Electric Utility revenues fell to $2.4 billion from $2.6 billion in the year-ago quarter. Nonutility power generation revenues fell to $614 million from $664 million. Financial services and other revenues were only $3 million in the reported quarter from $13 million in the year-ago quarter.
Segmental Results
Southern California Edison’s (SCE) GAAP EPS in the reported quarter was 53 cents compared to 43 cents in the year-ago quarter. Core earnings were 51 cents compared to 43 cents in the year-ago quarter. This increase was primarily due to higher operating income associated with the California Public Utilities Commission (CPUC) and Federal Energy Regulatory Commission (FERC) General Rate Case (GRC) decisions, partially offset by higher income taxes.
SCE recorded a 2 cent non-core charge in the reported quarter from revised interest costs related to the global tax settlement with the Internal Revenue Service (IRS).
Edison Mission Group’s (EMG) reported quarter GAAP EPS were 17 cents per share compared to 25 cents in the year-ago quarter. Core earnings were 13 cents in the reported quarter compared to 25 cents in the year-ago quarter. Core earnings declined primarily from lower energy prices at merchant coal-fired projects, lower trading income and lower results at Edison Capital, partially offset by lower income taxes.
Core earnings included unrealized gains on hedge contracts of 3 cents in the fourth quarter of 2009 and 4 cents in the fourth quarter of 2008. Core results in 2008 included a 4 cents charge to cancel a contract to supply natural gas turbines. Fourth quarter 2009 non-core items include 4 cents per share from the global tax settlement with the IRS.
Edison International's parent company and Other reported a loss of 5 cents per share compared to a 2 cent per share loss in the fourth quarter of 2008.
Financial Condition
Edison International reported cash and cash equivalents of $1.7 billion at the end of fiscal 2009 from $3.9 billion at year-end fiscal 2008. The company reported $3 billion in cash from operating activities at the end of fiscal 2009, compared to $2.3 billion at the end of fiscal 2008. Long-term debt decreased to $10.4 billion at the end of fiscal 2009 from $11 billion at the end of fiscal 2008.
Outlook
Edison International expects its GAAP and core earnings guidance for fiscal 2010 to be in the range $3.15 – $3.45. This is in-line with the Zacks Consensus Estimate of $3.30 for fiscal 2010.
Read the full analyst report on "EIX"
Zacks Investment Research