Edison International 2025 Q1 Earnings Strong Net Income Growth Amid Revenue Decline

Edison International (EIX) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The company's results showed a decline in revenue but a significant turnaround in profitability. Edison International's revenue fell by 6.5% to $3.81 billion from $4.08 billion in the same quarter the previous year, missing analysts' expectations of $4.23 billion. However, the company raised its basic EPS guidance, forecasting a range of $8.30 to $8.70, significantly higher than the previous guidance of $5.94 to $6.34.

Revenue

Edison International's total revenue for the first quarter of 2025 amounted to $3.81 billion, representing a 6.5% decrease from the $4.08 billion recorded in 2024 Q1. This decline was primarily attributed to lower operating revenue, which matched the total revenue figure of $3.81 billion.

Earnings/Net Income

Edison International returned to profitability with an EPS of $3.73 in 2025 Q1, reversing a loss of $0.03 per share in 2024 Q1, reflecting a remarkable 12533.3% positive change. The company's net income strengthened to $1.49 billion, marking a 2769.2% growth from $52 million in 2024 Q1. This significant improvement underscores strong operational resilience and a robust EPS performance.

Price Action

The stock price of Edison International has edged up 1.26% during the latest trading day, increased by 1.57% during the most recent full trading week, and has risen by 2.51% month-to-date.

Post-Earnings Price Action Review

The impact of Edison International's earnings report on its stock price has shown some positive movement in the short term, though the overall effect remains modest. Historically, the earnings report has been released 1,254 times over the past five years, maintaining a regular schedule. In the short term, the stock demonstrates a slight positive trend, with a 3-Day win rate of 53.43%, a 10-Day win rate of 53.19%, and a 30-Day win rate of 52.31%, suggesting that the stock price increases about half the time following the earnings report. The average returns over these short periods are relatively low, with a 3-Day return of 0.05%, a 10-Day return of 0.12%, and a 30-Day return of 0.34%. The maximum return observed was 1.15% on day 79 after the report, marking the peak positive stock movement. While revenue, net income, and EPS are critical metrics for assessing financial health, the backtest indicates that these do not necessarily predict significant stock price appreciation. Investors are advised to weigh the modest returns against potential risks when making investment decisions based on these earnings metrics.

CEO Commentary

Pedro J. Pizarro, CEO of Edison International, highlighted the company's significant growth in the first quarter of 2025, with core earnings per share increasing by 21% year over year. This was primarily driven by lower interest expenses related to cost recoveries from the TKM Settlement Agreement. Pizarro emphasized the importance of ongoing stakeholder engagement to enhance community safety and infrastructure resilience in California. He expressed confidence in the company's ability to rebuild wildfire-impacted areas while enhancing grid reliability.

Guidance

Edison International has revised its earnings guidance for 2025, now expecting a basic EPS range of $8.30 to $8.70, significantly higher than the previous guidance of $5.94 to $6.34. However, the company maintained its core EPS guidance at $5.94 to $6.34, with a target for 5-7% core EPS growth from 2025 to 2028, translating to a projected range of $6.74 to $7.14.

Additional News

In recent developments, Edison International has been actively engaging in regulatory proceedings and infrastructure projects. The company has made substantial progress in regulatory matters, including a settlement agreement in its WMCE proceeding related to wildfire mitigation and restoration. Edison International is executing a comprehensive plan to rebuild and harden electrical infrastructure in wildfire-affected areas, which includes undergrounding over 150 circuit miles. Additionally, Edison International addressed its parent debt needs for 2025 through a $550 million senior notes issuance, reflecting strong investor support. However, the company faces potential material losses related to the Eaton fire, with ongoing investigations and pending litigation. Edison International has not yet received a decision in its 2025 General Rate Case, creating uncertainty in revenue recognition. Despite these challenges, the company remains committed to addressing critical safety issues and supporting California's growth and economic development.