Should Contrasting Quarterly and Half-Year Results Prompt New Questions for Edison International (EIX) Investors?

• On July 31, 2025, Edison International released its second quarter results, showing quarterly sales of US$4.54 billion and net income of US$343 million, compared to US$4.34 billion in sales and US$439 million in net income a year ago.
• While second quarter net income declined year-over-year, earnings for the first half of 2025 showed a very large increase compared to the same period last year.
• We'll consider how the contrast between quarterly and half-year performance might influence Edison International's future investment narrative.

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Edison International Investment Narrative Recap

Investors in Edison International typically focus on the company’s long-term potential for stable, regulated utility returns and defensive income through dividends. The July 31 earnings release, revealing higher half-year profit despite a weaker second quarter, does not materially shift attention from the primary short-term catalyst, regulatory developments, nor from the central risk surrounding wildfire-related legal liabilities. The most relevant recent announcement supporting the investment case is the company’s ongoing capital commitment to wildfire mitigation, with a multi-year program to underground power lines and strengthen grid reliability. This type of investment remains closely tied to catalysts that influence regulatory decisions and the company’s potential for approved rate increases. In sharp contrast, investors should also be aware of the significant uncertainties tied to unresolved legal claims from the Eaton fire, including the possibility that...

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

Edison International is projected to generate $20.2 billion in revenue and $2.5 billion in earnings by 2028. This outlook is based on annual revenue growth of 5.2%, but expects a decrease in earnings of $0.2 billion from current earnings of $2.7 billion.

Uncover how Edison International's forecasts yield a $66.68 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Five Simply Wall St Community investors estimated Edison International’s fair value between US$20.38 and US$84.13 per share. Regulatory outcomes and wildfire liability risks continue to drive sharply differing outlooks for the company’s earnings and resilience.

Explore 5 other fair value estimates on Edison International - why the stock might be worth as much as 61% more 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 4 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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