The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Edison International missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly, and GAAP earnings per share shrank to a loss.
Gross margins increased, operating margins shrank, and net margins contracted.
Edison International tallied revenue of $3.01 billion. The five analysts polled by S&P Capital IQ expected revenue of $3.23 billion on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $3.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.75. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share on the same basis. GAAP EPS were -$2.57 for Q4 compared to $0.51 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 190 basis points better than the prior-year quarter. Operating margin was 14.8%, 10 basis points worse than the prior-year quarter. Net margin was -27.8%, 3,320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.94 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $12.95 billion. The average EPS estimate is $2.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 291 members rating the stock outperform and 17 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Edison International a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Edison International is outperform, with an average price target of $44.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.