Sep 30, 2023

Edison Q3 2023 Earnings Report

Edison International reported mixed results for Q3 2023, with GAAP EPS declining and core EPS slightly decreasing year-over-year. The company reaffirmed its 2023 EPS guidance and long-term core EPS growth target.

Key Takeaways

Edison International reported a net income of $155 million, or $0.40 per share, for the third quarter of 2023, compared to a net loss of $128 million, or ($0.33) per share, in the third quarter of last year. Core earnings were $531 million, or $1.38 per share, compared to core earnings of $564 million, or $1.48 per share, in the third quarter of last year. The company reaffirmed its 2023 core EPS guidance of $4.55-$4.85 and reiterated its long-term core EPS growth target of 5%-7%.

GAAP earnings per share were $0.40; Core EPS was $1.38.

Edison International reaffirmed its 2023 EPS guidance of $4.55-$4.85.

The company reiterated its long-term core EPS growth rate target of 5%-7% for 2021-2025 and 5%-7% for 2025-2028.

A net after-tax charge of $323 million was recorded due to a revised best estimate of expected losses for 2017/2018 Wildfire/Mudslide Events.

Total Revenue
$4.7B
Previous year: $5.23B
-10.1%
EPS
$1.38
Previous year: $1.48
-6.8%
Gross Profit
$1.83B
Previous year: $1.76B
+3.9%
Cash and Equivalents
$446M
Previous year: $232M
+92.2%
Free Cash Flow
$554M
Previous year: -$624M
-188.8%
Total Assets
$80.2B
Previous year: $76.7B
+4.5%

Edison

Edison

Forward Guidance

Edison International reaffirmed its earnings guidance range for 2023.

Positive Outlook

  • Reaffirmed 2023 core EPS guidance range.
  • Ongoing commitment to delivering 5% to 7% core EPS growth through 2025 and 2028.
  • Confidence in reaffirming 2023 core EPS guidance range.
  • SCE's industry-leading, multi-layered wildfire mitigation practices differentiate the company.
  • SCE has made tremendous progress since 2018, reducing its risk of losses from catastrophic wildfires by 85%.

Challenges Ahead

  • Revised best estimate of expected losses for 2017/2018 Wildfire/Mudslide Events, resulting in net after-tax charge of $323 million.
  • Southern California Edison’s third-quarter core earnings per share (EPS) decreased year over year, primarily due to higher interest expense.
  • True-up recorded in the third quarter of last year related to the Customer Service Re-Platform (CSRP) decision.
  • Edison International Parent and Other’s third-quarter core loss per share increased year over year, primarily due to higher interest expense.
  • Higher than expected costs to settle claims.