Edison International (NYSE:EIX) has reported a financial turnaround in Q3, with an income of $155 million, despite a decrease in Southern California Edison's (SCE) earnings due to higher expenses and strategic decisions. The company's Q3 revenues of $4,702 million marked a 10.1% decrease from last year's $5,228 million, falling short of the Zacks Consensus Estimate.
The company was able to realize a substantial operational cost reduction with a 20.1% decrease in operating expenses, a 20% cut in purchased power and fuel costs, and a 9.9% reduction in depreciation and amortization expenses. However, property and other taxes rose by 8.6%. A significant rebound was seen in operating income—from a $44 million loss in the year-ago quarter to a $492 million gain.
SCE's Q3 adjusted earnings per share dropped to $1.60 due to higher interest expenses and a true-up related to the Customer Service RePlatform decision. Meanwhile, Edison International Parent and Other reported an expanded loss of 22 cents per share because of increased interest expenses.
The company's cash reserves fell to $446 million as long-term debt grew to $29.53 billion. Despite these challenges, SCE's successful wildfire mitigation efforts reduced risks by 85%, contributing to the overall financial turnaround.
CEO Pedro J. Pizarro confirmed the company's 2023 core EPS guidance, indicating positive future performance. This news comes as a sign of potential stability for investors following the company's financial turnaround.
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