Does Strong Q3 Results Amid Wildfire Risks Shift the Narrative for Edison International (EIX)?

• Edison International recently reported third-quarter 2025 adjusted earnings per share of US$2.34, surpassing expectations and tightening its full-year 2025 core EPS guidance to US$5.95 - US$6.20.
• Despite the strong financial results, investors remain attentive to ongoing wildfire and regulatory risks specific to California, which continue to shape market sentiment toward the company.
• We'll explore how Edison International's solid earnings amid persistent wildfire and regulatory challenges may affect the company's investment outlook.

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Edison International Investment Narrative Recap

To be a shareholder in Edison International, you need to believe in the company's long-term potential to deliver steady returns through regulated utility operations and ongoing grid modernization, even as it faces persistent wildfire and regulatory risks unique to California. The recent Q3 earnings beat and tightened EPS guidance improve near-term confidence, but do not materially change the critical risk environment: wildfire liabilities and evolving state regulations remain the most important catalysts and threats for the stock in the coming months.

Among recent company actions, the October 28 completion of a US$32.19 million share repurchase stands out as the most relevant to the current performance discussion. While buybacks can reflect management's confidence in Edison International's valuation or financial strength, this move is less likely to significantly impact core investment drivers than ongoing issues around wildfire costs, regulatory frameworks, and allowed returns for California utilities.

Yet even with stronger earnings, investors should not ignore the potential for sudden, adverse impacts if wildfire litigation or regulatory reform outcomes shift...

Read the full narrative on Edison International (it's free!)

Edison International is projected to achieve $20.4 billion in revenue and $2.4 billion in earnings by 2028. This outlook is based on analysts’ assumptions of 5.2% annual revenue growth and a decrease in earnings by $0.2 billion from the current level of $2.6 billion.

Uncover how Edison International's forecasts yield a $67.37 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Four private investors in the Simply Wall St Community put Edison International’s fair value from US$52.50 to US$102.85, reflecting a broad spread. Despite these varied opinions, ongoing wildfire liability remains a top concern that could weigh on the company’s earnings resilience; consider how such risks might shape your view of the future.

Explore 4 other fair value estimates on Edison International - why the stock might be worth 11% less than the current price!

Build Your Own Edison International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Edison International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Edison International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Edison International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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