In This Article:
Investors in Edison International (NYSE:EIX) had a good week, as its shares rose 4.4% to close at US$54.44 following the release of its yearly results. It was not a great result overall. While revenues of US$18b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit US$3.33 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Edison International
Taking into account the latest results, the current consensus from Edison International's ten analysts is for revenues of US$18.0b in 2025. This would reflect a credible 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 81% to US$6.00. Before this earnings report, the analysts had been forecasting revenues of US$18.1b and earnings per share (EPS) of US$5.35 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
The consensus price target fell 8.7% to US$71.49, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Edison International analyst has a price target of US$94.89 per share, while the most pessimistic values it at US$48.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Edison International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Edison International.