Edison International's (EIX) first-quarter profit fell 14% on lower-than-expected revenue as decreased earnings at the company's competitive power generation business offset higher results from its Southern California Edison utility.
Edison International's (EIX) first-quarter profit fell 14% on lower-than-expected
revenue as decreased earnings at the company's competitive power generation
business offset higher results from its Southern California Edison utility.
California
rules
that separate profit from power and gas sales have helped
Edison
's San
Diego-area utility company maintain relatively stable revenue while it gets to
collect an authorized return on equity on capital investments.
At the same time, two members of the California Public Utilities Commission
appointed by newly elected Gov. Jerry Brown could hurt the regulated business
by tilting the authority more toward consumers, according to an analysis from
J.P. Morgan Chase & Co. (JPM).
The smaller Edison Mission Group, the company's competitive power generating
business, swung to a loss on declines in generation, realized energy prices and
trading revenue. The unit also recorded income in the previous year that was
not posted in the latest quarter.
Edison International posted a first-quarter profit of $214 million, down from
$249 million a year earlier. On a per-share basis, which includes the payment
of preferred dividends, earnings slipped to 61 cents from 72 cents. Excluding
discontinued operations, a prior-year regulatory charge and other items, the
company's adjusted earnings were 62 cents, down from 82 cents.
Revenue grew 1% to $2.78 billion, while operating costs decreased 0.9%.
Analysts polled by Thomson Reuters were expecting a per-share profit of 63
cents on revenue of $3.14 billion.
Sales rose 3.4% in the larger Southern California Edison but fell 15% at Edison
Mission Group.
Shares of Edison International, which affirmed its full-year guidance, closed
at $39.27 Friday and were inactive premarket. The stock dipped after the
Japan
earthquake disaster raised concerns over
Edison
's own
nuclear plant but is now up 7.2% over the past three months.
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