Core Viewpoint - California regulators have reduced the profit margins for utilities on infrastructure investments to address rising electricity bills while balancing the need for grid fortification against wildfire risks [1][2]. Group 1: Regulatory Changes - The California Public Utilities Commission voted 4-1 to set profit returns for PG&E, Southern California Edison, and San Diego Gas & Electric in the range of 9.78% to 10.03%, which is slightly above the national average of approximately 9.72% [3]. - PG&E had requested a profit margin of 11.3%, while Southern California Edison and San Diego Gas & Electric sought margins of 11.75% and 11.25%, respectively [3]. Group 2: Financial Implications - The decision aims to mitigate the financial burden on consumers by controlling utility costs, which have been significantly impacted by the need for infrastructure improvements to prevent wildfires [2]. - The costs associated with fortifying the grid are expected to reach billions of dollars, which utilities typically pass on to consumers [2].

Core Insights - Edison International (EIX) is a significant entity in the Utility - Electric Power sector, providing electric power and energy services [1] - The stock price of EIX is currently $59.58, with a slight increase of approximately 2.16% [3] - The company has a market capitalization of approximately $22.92 billion, indicating its substantial market presence [4] Price Target and Analyst Ratings - David Arcaro from Morgan Stanley has set a new price target for EIX at $57, suggesting a potential downside of about -4.26% from the current trading price [1][5] - EIX holds a Zacks Rank of 2 (Buy), indicating a positive trend in earnings estimate revisions and a favorable earnings outlook compared to its competitor, NextEra Energy, which has a Zacks Rank of 3 (Hold) [2][5] Stock Performance - EIX has shown significant price fluctuations over the past year, reaching a high of $81.02 and a low of $47.73, reflecting its dynamic market performance [3][5] - The trading volume on the NYSE for EIX is 1,158,472 shares, indicating active investor interest [4]

Core Viewpoint - Edison International announced a quarterly common stock dividend of $0.8775 per share, increasing the annual dividend rate to $3.51 per share, which is a 6% increase from the previous rate of $3.31 per share, marking the 22nd consecutive year of dividend growth [1]. Group 1: Dividend Announcement - The quarterly common stock dividend is set at $0.8775 per share, payable on January 31, 2026, to shareholders of record on January 7, 2026 [1]. - The annual dividend rate has increased to $3.51 per share, reflecting a 6% increase from the previous rate of $3.31 per share [1]. - This marks the 22nd consecutive year of dividend growth for Edison International [1]. Group 2: Company Overview - Edison International is one of the largest electric utility holding companies in the United States, focused on providing clean and reliable energy [2]. - The company is headquartered in Rosemead, California, and is the parent company of Southern California Edison Company, which delivers electricity to 15 million people across Southern, Central, and Coastal California [2]. - Edison International also oversees Trio, a portfolio of nonregulated competitive businesses that provide integrated sustainability and energy advisory services in North America and Europe [2].

Core Viewpoint - Edison International announced a quarterly common stock dividend of $0.8775 per share, increasing the annual dividend rate to $3.51 per share, which is a 6% increase from the previous rate of $3.31 per share, marking the 22nd consecutive year of dividend growth [1] Group 1: Dividend Announcement - The quarterly common stock dividend is set at $0.8775 per share, payable on January 31, 2026, to shareholders of record on January 7, 2026 [1] - The annual dividend rate has increased to $3.51 per share, reflecting a 6% increase from the prior rate of $3.31 per share [1] - This marks the 22nd consecutive year of dividend growth for Edison International [1] Group 2: Company Overview - Edison International is one of the largest electric utility holding companies in the United States, focused on providing clean and reliable energy [2] - The company is headquartered in Rosemead, California, and is the parent company of Southern California Edison Company, which delivers electricity to 15 million people across Southern, Central, and Coastal California [2] - Edison International also oversees Trio, a portfolio of nonregulated competitive businesses that provide integrated sustainability and energy advisory services in North America and Europe [2]

Core Insights - UBS raised the price target for Edison International (EIX) to $70 from $66 while maintaining a Buy rating on the shares [1] Financial Performance - Edison International reported third-quarter core EPS of $2.34, an increase from $1.51 in the same period last year [2] - The company's revenue for the quarter was $5.75 billion, reflecting a 10% year-over-year growth [3] - Operating income rose to $1.43 billion from $995 million in the prior year period [3] - Edison International reaffirmed its core EPS growth target of 5% to 7% through 2028 [3] Legislative Impact - The approval of SB 254 is highlighted as a significant advancement for Edison International, aimed at benefiting IOU customers, reducing wildfire risks, and enhancing the financial stability of investor-owned utilities in California [2]

Core Insights - Edison International (EIX) is heavily investing in renewable energy, battery storage, electric-vehicle infrastructure, and grid modernization to support long-term decarbonization goals, with a market cap of $22.4 billion [1] Company Overview - EIX is classified as a large-cap stock, with a market cap exceeding $10 billion, indicating its size and influence in the regulated electric utility industry [2] - The company benefits from strong regulatory support, long-term capital programs, and a focus on system safety and reliability, maintaining a competitive advantage in the evolving electric utility landscape [2] Stock Performance - EIX shares have dipped 31.9% below their 52-week high of $84.21, reached on December 9, 2024, and have gained 7.4% over the past three months, underperforming the Nasdaq Composite's 8% rise [3] - Over the past 52 weeks, EIX has fallen 31.8%, significantly lagging behind the Nasdaq's 18.5% increase, and on a year-to-date basis, shares are down 28.3% compared to Nasdaq's 21.9% return [4] Financial Performance - On October 28, EIX reported a better-than-expected Q3 adjusted EPS of $2.34, a 55% increase from the same period last year, driven by higher revenue from the 2025 GRC final decision [5] - Despite the strong profitability, shares fell 1.2% in the following trading session due to an increase in core loss per share attributed to higher interest expenses, and EIX lowered its fiscal 2025 core EPS guidance to a range of $5.95 to $6.20 [5] Competitive Position - EIX has underperformed compared to its rival, PG&E Corporation (PCG), which declined 25.6% over the past 52 weeks and 25% on a year-to-date basis [6]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, targeting stocks with sustainable growth [5] Momentum Score - The Momentum Score capitalizes on price trends, utilizing factors like recent price changes and earnings estimate shifts to identify high-momentum stocks [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8][10] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal return potential [10][11] Stock to Watch: Edison International (EIX) - Edison International (EIX) is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [12] - EIX's Value Style Score is A, supported by a forward P/E ratio of 9.52, making it attractive for value investors [12] - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate for fiscal 2025 to $6.10 per share, with an average earnings surprise of +7.3% [13]

Core Thesis - Edison International (EIX) presents a bullish investment opportunity following a significant share price decline due to concerns over potential liabilities from the Eaton Fire, despite a 37% sell-off being viewed as excessive given the company's strong regulated-utility model and financial protections in California [2][6]. Company Overview - Edison International operates primarily through Southern California Edison (SCE), one of the largest regulated electric utilities in the U.S., earning returns through CPUC-approved rate base investments rather than electricity sales [3]. - SCE has a 10.33% authorized return on equity (ROE), one of the highest in the industry, supported by multi-year rate case decisions focused on grid modernization, wildfire mitigation, and clean energy infrastructure [3]. Financial Performance and Outlook - Despite limited customer growth, California's strong commercial economy and increasing power demand support sustained capital deployment, leading to a management outlook of 5-7% EPS growth and long-term dividend expansion [4]. - The company benefits from California's Wildfire Fund, which caps SCE's exposure to wildfire liabilities at $3.9 billion, fully recoverable through the fund, thus mitigating concerns over wildfire liabilities [5]. Investment Opportunity - The stock is considered undervalued with an implied value of $79.11, representing a 43.1% upside from current levels, making it a compelling risk-adjusted investment opportunity as liabilities become clearer and investor confidence returns [6].

Core Viewpoint - Southern California Edison Co., a subsidiary of Edison International, is taking measures to reduce or eliminate two series of preferred stock that are set to offer attractive floating dividend rates [1] Group 1 - The company is focused on managing its capital structure by addressing preferred stock that may impact its financial flexibility [1] - The preferred stocks in question are SCE.PR.K and SCE.PR.J, which are currently held by investors [2]

Core Insights - Edison International's third-quarter 2025 adjusted earnings were $2.34 per share, exceeding the Zacks Consensus Estimate of $2.16 by 8.3% and reflecting a 55% increase from $1.51 in the same quarter last year [3] - The company's total operating revenues for the third quarter reached $5.75 billion, surpassing the Zacks Consensus Estimate of $5.61 billion by 2.6% and showing a year-over-year increase of 10.6% from $5.2 billion [4] Financial Performance - Total operating expenses rose by 2.7% year over year to $4.32 billion, with purchased power and fuel costs decreasing by 10.4% and depreciation and amortization expenses increasing by 21.4% [5] - Operating income for the quarter was $1.43 billion, compared to $0.99 billion in the prior-year period [6] Segment Results - Southern California Edison reported adjusted earnings of $2.58 per share, up from $1.74 in the year-ago quarter, attributed to higher revenues from the 2025 GRC final decision [7] - The Edison International Parent and Other segment incurred an adjusted loss of 24 cents per share, slightly worse than the loss of 23 cents in the previous year due to increased interest expenses [7] Financial Update - As of September 30, 2025, cash and cash equivalents were $364 million, up from $193 million at the end of 2024 [8] - Long-term debt increased to $34.48 billion from $33.53 billion at the end of 2024, while net cash flow from operating activities for the first nine months of 2025 was $4.23 billion, compared to $3.84 billion in the prior-year period [8] Capital Expenditures - Total capital expenditures for the company were $4.62 billion as of September 30, 2025, higher than $4.21 billion in the same period last year [9] 2025 Guidance - The company has narrowed its 2025 earnings outlook to a range of $5.95-$6.20 per share, compared to the previous guidance of $5.94-$6.34, with the Zacks Consensus Estimate currently at $6.10 per share [11] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 22.06% recently [12] VGM Scores - Edison International holds a Growth Score of B, a Momentum Score of D, and a Value Score of A, resulting in an aggregate VGM Score of A [13] Industry Performance - Edison International is part of the Zacks Utility - Electric Power industry, where another player, FirstEnergy, reported revenues of $4.15 billion, reflecting an 11.2% year-over-year increase [15]