Edison Q2 2023 Earnings Report
Key Takeaways
Edison International reported a second-quarter net income of $354 million, or $0.92 per share, compared to $241 million, or $0.63 per share, in the second quarter of last year. Core earnings were $388 million, or $1.01 per share, compared to $357 million, or $0.94 per share, in the second quarter of last year. The company reaffirmed its 2023 core EPS guidance of $4.55-$4.85 and introduced a core EPS growth rate target of 5%-7% for 2025-2028.
GAAP earnings per share were $0.92, while core EPS reached $1.01.
SCE has completed nearly 5,000 miles of covered conductor, reducing the probability of catastrophic wildfires by an estimated 85%.
2023 EPS guidance was reaffirmed at $4.55-$4.85.
A long-term core EPS growth rate target of 5%-7% was reiterated for 2021-2025, and a new target of 5%-7% was introduced for 2025-2028.
Edison
Edison
Forward Guidance
Edison International reaffirmed its earnings guidance range for 2023, targeting a core EPS between $4.55 and $4.85, and introduced a core EPS growth rate target of 5%-7% for 2025-2028, with a starting point of the midpoint of Edison International’s 2025 core EPS guidance of $5.50 to $5.90.
Positive Outlook
- Confidence in delivering on 2023 core EPS guidance.
- Targeting 5% to 7% EPS growth for 2025 through 2028.
- Potential for $7 EPS for 2028.
- Rate base growth driven by essential investments to advance California’s clean energy transition.
- SCE is strategically positioned to make substantial investments in the reliability, resiliency and readiness of the grid.
Challenges Ahead
- Ability of SCE to recover its costs through regulated rates.
- Ability of SCE to implement its Wildfire Mitigation Plan and capital program.
- Risks of regulatory or legislative restrictions that would limit SCE's ability to implement operational measures to mitigate wildfire risk.
- Risks associated with SCE implementing PSPS, including regulatory fines and penalties, claims for damages and reputational harm.
- Ability of SCE to maintain a valid safety certification, which is required to benefit from certain provisions of California Assembly Bill 1054 (“AB 1054”).