Edison International Hits 52-Week High on Solid Q3 Earnings
Electric utility provider, Edison International (EIX) touched a 52-week high of $63.66 per share during the intraday session on Nov 28, 2014. The share price finally closed a tad lower at $63.56 with traded volume of nearly 0.9 million. Over the past year, Edison International shares have seen a steady uptrend with the stock now up nearly 42% in the same period.
Rosemead, CA-based, Edison International reported strong third quarter results. Quarterly earnings surpassed the Zacks Consensus Estimate by 12.6% and increased 7% year over year. Moreover, the company has reported positive earnings surprises in all of the last four quarters with an average beat of 18.50%. In addition, the long-term earnings growth of the company is pegged at a healthy 8.13%.
The company on the basis of its upbeat third quarter numbers raised the adjusted earnings per share guidance to $4.25–$4.35 for 2014 from the previous expectation of $3.60–$3.80.
Southern California Edison (:SCE), a wholly owned subsidiary of Edison International, operates in the supportive regulatory environment of California and aims at implementing infrastructure improvement programs. These infrastructural programs mainly focus on system reliability, smart grid technology and compliance with the state of California’s renewable energy regulations.
Edison International invested $2.9 billion during the first nine months of 2014 and targets to invest around $15.4–$17.4 billion from 2014 through 2017. The capital investment plan primarily focuses on its distribution and transmission business and also aims to add renewable assets to its portfolio.
Through 2017, SCE continues to target 7–9% average annual rate base and earnings growth driven by disciplined investment in infrastructure projects. Moreover, the company continues to optimize its cost structure, particularly at SCE and strive for operational excellence.
Edison International currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the electric utility space include Black Hills Corp. (BKH), PG&E Corp. (PCG) and IdaCorp, Inc. (IDA). While Black Hills and PG&E sport a Zacks Rank #1 (Strong Buy), IdaCorp carries a Zacks Rank #2 (Buy).
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