Edison International Slumps to 365th in Trading Volume Despite 206% Stock Price Surge

On June 10, 2025, Edison International (EIX) saw a significant drop in trading volume, with a turnover of $274 million, marking a 46.42% decrease from the previous day. This decline placed Edison International at the 365th position in terms of trading volume for the day. However, the stock price of Edison International rose by 2.06%.

Edison International's stock rating was downgraded by Wolfe Research from "outperform" to "peer perform." The downgrade was attributed to various uncertainties, including ongoing litigation related to the Eaton Fire, ambiguities surrounding the new assembly bill 1054, and an unresolved general rate case. The 2025 wildfires in Southern California, particularly those in the utility territory of Southern California Edison (SCE), have raised doubts about the stability of California's regulatory measures that limit wildfire liability costs and establish a Wildfire Fund for claim payments. Additionally, there is concern that new legislation following the Eaton Fire might require Edison to increase its shareholder contributions.

Despite these challenges, Edison International reported a significant increase in core earnings per share, rising to $1.37 from $1.13 year-over-year. The company remains confident in meeting its 2025 EPS guidance and delivering a 5% to 7% core EPS CAGR through 2028. Edison International has made substantial progress in regulatory proceedings, including a settlement agreement in its WMCE proceeding related to wildfire mitigation and restoration. The company is executing a comprehensive plan to rebuild and harden electrical infrastructure in wildfire-affected areas, which includes undergrounding over 150 circuit miles. Edison International has successfully addressed its parent debt needs for 2025 through a $550 million senior notes issuance, demonstrating 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. The company is dealing with increased interest expenses, partially offsetting earnings gains. There is uncertainty regarding the legislative efforts to enhance California's wildfire framework, with no guarantees of action in the current session. The potential liability from the Eaton fire is not yet estimable, and the company has not ruled out the possibility of its equipment being involved.