Edison International: A Closer Look at Stock Performance and Future Outlook
The Rosemead, California-based Edison International (EIX) is an electric utility holding company known for delivering clean and reliable energy solutions. With a market capitalization of $32.4 billion, it also offers integrated decarbonization and energy services for commercial, industrial, and institutional clients.
Stock Performance Compared to Broader Market
Over the past 52 weeks, EIX shares have lagged behind the overall market. While EIX increased by 28.2%, the S&P 500 Index ($SPX) saw a gain of 30.4%. This year, EIX is up nearly 17.1%, falling short of the SPX’s 23.1% rise.
Comparison with Utility Sector
When looking specifically at the Utilities Select Sector SPDR Fund (XLU), EIX’s performance aligns with its 28.3% gain over the past year, yet EIX has underperformed XLU’s 25.1% rise this year.
Q3 Earnings Report Highlights
After releasing its Q3 earnings on July 29, EIX shares saw a slight uptick. The adjusted earnings rose 9.4% to $1.51 per share, beating Wall Street’s estimate of $1.39. Additionally, the company’s revenue totaled $5.2 billion, surpassing the forecast of $4.76 billion and marking a 10.6% increase from the previous year. However, EIX lowered its earnings guidance for 2024 to a range of $4.80 to $5 per share.
Analyst Expectations
For the fiscal year ending in December, analysts predict an 8.6% decline in EIX’s earnings per share to $1.17. Interestingly, the company has consistently met or exceeded Wall Street’s expectations over the last four quarters.
A survey of 18 analysts covering the stock shows a unanimous consensus rating of “Moderate Buy,” comprised of 10 “Strong Buy,” one “Moderate Buy,” five “Hold,” and two “Strong Sell” ratings.
Analyst Ratings and Price Targets
On October 30, Barclays analyst Nicholas Campanella retained an “Equal Weight” rating on EIX while raising the price target to $91, suggesting an 8.7% upside from the current price. Furthermore, the mean price target stands at $90.09, indicating a 7.7% upside potential. The highest price target of $100 implies a possible upside of 19.5%.
On the date of publication, Neharika Jain did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are 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.
