Company Overview and Market Cap
Edison International (EIX), based in Rosemead, California, stands as one of the largest electric utility holding companies in the U.S. With a market cap of $31.4 billion, it offers clean and reliable energy through its subsidiaries, along with integrated decarbonization and energy solutions for commercial, industrial, and institutional clients.
Stock Performance Insights
EIX, classified as a “large-cap stock” for companies valued at $10 billion or more, operates in a regulatory environment that allows for rate adjustments. This helps secure steady and growing revenue streams. The company’s infrastructure investments are strategic, focusing on accommodating increasing energy demand, upgrading outdated systems, and enhancing underground facilities. Such efforts improve service reliability and position EIX for long-term growth in the utility sector.
Currently, EIX shares are trading 9.3% below their 52-week high of $88.77, reached on September 4. Over the past three months, the stock has declined by 6.5%, lagging behind the Dow Jones Industrials Average’s ($DOWI) 4.4% increase during the same period.
Year-to-Date Performance
Looking at the long-term outlook, EIX has seen a 12.6% increase year-to-date (YTD) and has risen 14.9% over the past year. In comparison, the DOWI has appreciated by 15.3% in 2024 and 16.5% year-over-year.
Since mid-April, EIX has stayed above its 200-day moving average, but it has been below its 50-day moving average since early December.
Quarterly Earnings Report
EIX shares saw a slight uptick following the release of its Q3 earnings on October 29. Adjusted earnings rose 9.4% to $1.51 per share, surpassing Wall Street’s expectations of $1.39. The company’s reported revenues amounting to $5.2 billion also exceeded predictions of $4.76 billion, marking a 10.6% increase from the prior year. However, EIX has lowered its earnings guidance for 2024 to between $4.80 and $5 per share.
Comparison with Competitors
In a direct performance comparison, EIX’s competitor, NextEra Energy, Inc. (NEE), has outperformed EIX with a 19% YTD gain and a 17.5% increase over the past year.
Analysts’ Outlook
Analysts maintain a cautiously optimistic view on EIX’s future performance despite its recent underwhelming results. The stock holds a consensus rating of “Moderate Buy” from 18 analysts. The average price target is $91.09, indicating a potential upside of 13.2% from the current share price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
