What Just Happened With Edison International (EIX)?
Edison International earnings reset and guidance cut
Edison International (EIX) has moved into the spotlight after reporting lower third quarter and year to date sales and net income, trimming full year earnings guidance and filing a new common stock shelf registration.
The latest earnings reset has come after a choppy year for Edison International’s share price, with the stock down 12.47% over the past 90 days but showing a 7.36% 1 month share price gain as investors reassess the outlook. Over a longer stretch, total shareholder return of 9.94% over one year and 17.61% across five years points to steadier wealth creation in dividends plus price moves, even as current sentiment reflects the lower guidance and the fresh equity shelf overhang.
Scan beyond Edison International and see how other regulated utilities are handling earnings pressure and equity funding by reviewing our curated 41 power grid technology and infrastructure stocks
Bulls see a regulated utility with a long operating history and a 1 year total return near 10%. Bears point to falling earnings and fresh equity capacity. Which side does Edison International’s current valuation reflect?
Most Popular Narrative: 7% Undervalued
Edison International’s last close at $59.37 sits below the $63.93 fair value from the analyst consensus Narrative on Simply Wall St, which folds in Wall Street earnings forecasts, wildfire risk and capital spending assumptions into one integrated view.
Policy driven increases in electrification, together with climate goals, continue to require large scale grid upgrades in Southern California that Edison International plans to address through a US$38b to US$41b capital program from 2026 to 2030. This program is expected to increase the regulated rate base and support future revenue and earnings.
See why 40 investors see Edison International as 7% undervalued.
Result: Fair Value of $63.93 (UNDERVALUED)
Still, the narrative can crack if wildfire liabilities escalate further, or if California policy shifts in ways that restrict Edison International’s ability to recover costs.
Find out about the key risks to this Edison International narrative.
Next Steps
Mixed messages on Edison International can be useful. Use that contrast to move quickly, review the data yourself, and decide how the risk reward trade off looks in your portfolio with 3 key rewards and 4 important warning signs
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