Edison International (EIX) Q3 Earnings call transcript Oct 29, 2024
2min read Edison International's third quarter 2024 earnings call presented a positive outlook for the company, with a focus on financial stability and future growth prospects. The call, led by President and CEO Pedro Pizarro and Executive Vice President and CFO Maria Rigatti, provided insights into the company's financial performance, regulatory landscape, and strategic initiatives. Here are the key takeaways from the call.
Financial Performance and Guidance
Edison International reported a strong year-to-date core earnings per share (EPS) of $3.88, with the third quarter EPS at $1.51. This performance is underpinned by higher CPUC revenue and authorized rates of return, offset by higher interest expense associated with wildfire claims payments. The company is confident in narrowing its 2024 core EPS guidance to $4.80 to $5, and remains optimistic about meeting its 2025 EPS guidance and delivering a 5% to 7% EPS compound annual growth rate through 2028.
Regulatory Landscape and Wildfire Management
The regulatory environment in California continues to be a key focus for Edison International. The company is in the final stages of settling the TKM cost recovery application, which marks a significant milestone in navigating the regulatory landscape. SCE has also reached net 0 greenhouse gas emissions by 2045, a core pillar of the company's climate-related risk management strategy. The company's wildfire mitigation plan has been successful in reducing acres burned from SCE's ignitions in high fire risk areas, while maintaining relatively flat emissions.
Strategic Initiatives and Investments
Edison International is investing in several strategic initiatives, including the deployment of covered conductor, which has physically hardened 85% of its distribution grid in high fire risk areas. The company is also working on the stand-alone application for its next-generation enterprise resource planning system and advanced metering infrastructure 2.0, representing over $2 billion of CPUC jurisdictional capital investments.
Outlook and Challenges
Edison International's outlook remains positive, with a focus on delivering strong operational performance and meeting its financial commitments. However, the company faces challenges, including regulatory decisions and cost recovery for legacy wildfires. The company is working to resolve these issues and remains confident in its ability to navigate the complex regulatory landscape and deliver on its long-term growth prospects.
Investor Questions and Answers
The call included questions from analysts, focusing on affordability concerns, wildfire proceedings, and future investment plans. The company provided detailed answers, emphasizing its commitment to delivering strong financial performance while managing the regulatory landscape and navigating the challenges of wildfire mitigation and climate change.
In conclusion, Edison International's third quarter 2024 earnings call highlighted the company's financial stability, strategic initiatives, and commitment to navigating the complex regulatory landscape in California. The company's focus on reducing greenhouse gas emissions and investing in strategic initiatives, such as wildfire mitigation and the deployment of covered conductor, positions it well for future growth. Despite challenges, Edison International remains confident in its ability to deliver on its financial commitments and meet its long-term growth targets.
