Earnings Preview: Edison International (EIX) Q2 Earnings Expected to Decline

Edison International (EIX) is anticipated to report a significant year-over-year decline in Q2 2025 earnings, with consensus EPS projected at $1.03 (down 15.6%) on $4.27 billion in revenue (down 1.6%). Notably, the EPS estimate has been revised 19.33% lower over the past 30 days, and the company's negative Earnings ESP of -5.70% combined with a Zacks Rank #3 suggests it is unlikely to surpass these lowered expectations, despite having beaten estimates in three of the last four quarters. This bearish analyst sentiment for EIX contrasts with a more favorable outlook for industry peer American Electric Power (AEP).

Analysis

Edison International (EIX) faces a challenging outlook for its upcoming Q2 2025 earnings report, with consensus estimates pointing to a significant year-over-year decline in both earnings and revenue. Projections anticipate earnings per share of $1.03, a 15.6% decrease, and revenues of $4.27 billion, a 1.6% decrease. The negative sentiment is amplified by a substantial 19.33% downward revision in the consensus EPS estimate over the past 30 days, indicating that covering analysts have become increasingly bearish on the company's near-term prospects. This is further substantiated by the company's negative Zacks Earnings ESP of -5.70%, which, when combined with its Zacks Rank #3 (Hold), makes an earnings beat difficult to predict based on the provided model. While EIX has a track record of surpassing EPS estimates in three of the last four quarters, the current forward-looking indicators are decidedly negative. This contrasts with industry peer American Electric Power (AEP), which, despite a smaller projected EPS decline, shows a positive Earnings ESP of +10.63%, suggesting a higher probability of a positive surprise and highlighting potential company-specific weakness at EIX.

Key Decisions for Investors

• Given the significant downward EPS estimate revisions and a negative Earnings ESP of -5.70%, investors should exercise caution with EIX positions ahead of the earnings release, as quantitative indicators suggest a low probability of a positive surprise.
• Consider the diverging fundamental indicators between EIX and peer AEP; AEP's positive Earnings ESP and revenue growth forecast may present a more favorable risk/reward profile within the electric utility sector.
• Focus on management's guidance and commentary during the earnings call, as any unforeseen catalysts or changes to the business outlook will likely be more influential for the stock's direction than the headline earnings number itself.