Edison International (NYSE: EIX), has reported the adjusted earnings per share of $1.43 in the third quarter of FY 17 ended September 30, 2017, beating the analysts’ estimates for the adjusted earnings per share of $1.33 according to Zacks Investment Research. The company had reported 2.7percent fall in the adjusted revenue growth to $3.67 billion in the third quarter of FY 17. Overall, EIX has reported third-quarter net income of $470 million, compared to $421 million prior year. The growth has come primarily due to the escalation mechanism set forth in the 2015 General Rate Case (GRC) decision. Further, the increase is also primarily related to higher income tax benefits resulting from net operating loss carrybacks from the filing of the 2016 tax returns in 2017.
For FY 17, Edison International has increased its guidance due to the continued strong performance at SCE and tax benefits the company has received throughout the year. The company now expects core earnings per share to be in a range of $4.27 to $4.37, up from prior outlook range of $4.13 to $4.33.
Meanwhile, Edison International has reported the net income of $1.1 billion for the nine months as compared to $982 million during the same period in 2016. Edison International’s core earnings were $1.1 billion, compared to $978 million, in the year-to-date period in 2016. The increase for the three quarters is primarily related to an increase in revenue from the escalation mechanism set forth in the 2015 GRC decision and lower operation and maintenance expenses, partially offset by a reduction in CPUC revenue related to prior over collections and higher net financing costs.
Additionally, EIX Parent and Other’s losses from continuing operations for the nine months 2017 has decreased by $54 million, compared to the same period in 2016. The total core losses for the year-to-date period in 2017 has decreased by $58 million, compared to the same period in 2016. The decrease in core losses is primarily related to higher income tax benefits resulting from the stock option exercises, net operating loss carrybacks from the filing of the 2016 tax returns in 2017, and the 2017 settlement of federal income tax audits for 2007 – 2012.