Edison International (NYSE: NYSE:EIX) is expected to announce its third-quarter financial results for the year 2023 on November 1, following the market's closure. The announcement comes amid unpredictable weather patterns in EIX's service territories, which could lead to mixed revenue impacts.
In the previous quarter, EIX reported an earnings surprise of 8.60%, contributing to a four-quarter average surprise of 4.74%. The company's top-line performance may benefit from the positive influence of the general rate case. According to Zacks Consensus, third-quarter revenues are forecasted to reach $5.38 billion, representing a 2.8% year-on-year increase.
However, the company also faces challenges. High-interest rates associated with the funding of wildfire claim payments from 2017 and 2018 could increase net interest expenses, potentially impacting EIX's bottom line negatively.
Additionally, summer wildfires in EIX's service areas are likely to have increased operational costs due to necessary restoration work. This could potentially dent the company's quarterly earnings. The Zacks Consensus estimates third-quarter earnings at $1.46 per share, which would be a 1.4% decline from the same quarter last year.
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