Edison International on Feb. 21 posted fourth-quarter 2016 adjusted core earnings of $332 million, or $1.02 per share, exceeding the S&P Capital IQ normalized EPS estimate for the quarter of 98 cents per share. The results compare to fourth-quarter 2015 adjusted core earnings of $287 million, or 88 cents per share.
Meanwhile, the company's utility Southern California Edison Co. reported adjusted core earnings of $339 million, or $1.04 per share, compared to $290 million, or 89 cents per share, in the fourth quarter of 2015.
"The increase in core earnings was due to an increase in revenue from the escalation mechanism as set forth in the 2015 General Rate Case and lower operations and maintenance expenses, partially offset by higher net financing costs and tax expense," the company said in an earnings release.
On a GAAP basis, Edison International booked fourth quarter 2016 net income of $345 million, or $1.06 per share, compared to a loss of $79 million, or a loss of 24 cents per share, in the previous year. Southern California Edison saw a year-over-year increase in net income by $419 million, or $1.29 per share.
Operating revenues for the quarter increased to $2.88 billion from $2.34 billion a year ago while operating income climbed to $566 million from $340 million in the comparable quarter in 2015.
For full-year 2016, Edison International's net income rose to $1.31 billion from $1.02 billion in the prior year. The company reported adjusted core earnings of $1.29 billion, or $3.97 per share, compared to $1.34 billion, or $4.10 per share, in 2015. The S&P Capital IQ normalized EPS estimate for 2016 is $3.91 per share.
"Edison International delivered excellent fourth quarter and full-year results at the high end of our guidance range, led by SCE's strong operating performance," Edison International President and CEO Pedro Pizarro said in a statement. "Additionally, we have introduced 2017 earnings guidance with the midpoint above consensus analyst estimates."
For 2017, the company is targeting basic and core earnings of $4.04 per share to $4.24 per share. The S&P Capital IQ normalized EPS estimate for 2017 is $4.10 per share.