Edison Reports Strong Earnings

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Edison International on Tuesday reported strong first quarter earnings that beat street estimates as its electric utility subsidiary profited from higher power rates that kicked in this year.

After the markets closed on Tuesday, Edison reported first quarter core earnings rose $252 million (77 cents a share), an increase of 42 percent from a year ago. The core earnings exclude income from discontinued operations, mostly from Edison’s Mission Energy subsidiary that’s now in bankruptcy proceedings.

Revenue for the first quarter rose 9 percent to $2.63 billion.

Analysts polled by Thomason Reuters had estimated first quarter core earnings of 66 cents a share on $2.36 billion in revenues.

Edison attributed the increase in core earnings to implementation of new, higher rates for Southern California Edison approved by the California Public Utilities Commission last November.

“We’re off to a strong start in the first quarter, with earnings consistent with our full-year guidance,” Ted Craver, Edison International chief executive, said in a statement.

Edison’s stock, which hit 52-week highs several times this month, closed down 18 cents to $53.80 a share prior to the earnings release. The stock rose 20 cents in initial after-hours trading.

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