Utility company Edison International (EIX) on Friday reported first quarter profits that beat analyst expectations, despite falling 16% from the same quarter last year.
The Rosemead, California-based company reported first quarter net income of $250 million, 76 cents per share, down 16% from $299 million, or 91 cents per share, in the year-ago period. Revenue dropped 10% to $2.81 billion.
On average, Wall Street analysts expected a profit of 67 cents per share on revenue of $2.9 billion.
Edison lowered its full-year 2009 earnings guidance to a range of $1.98 to $2.51 per share, down from earlier guidance of $2.90 to $3.20, citing certain tax charges it expects to incur in the second quarter. Excluding charges, however, the company reaffirmed core earnings of $2.90 to $3.20 per share.
On average, analysts expect $3.03 per share for full-year 2009.
Edison shares rose 81 cents, or +2.7%, in late morning trading Friday.
The Bottom LineWe removed EIX from our “Recommended” list on Aug. 1, when shares were trading at $48.34. The company currently has a dividend yield of 4.16%, based on Friday’s closing stock price of $29.79. The stock has technical support at the $25 level. If the shares can firm up, we see overhead resistance around the $36 level. We would remain on the sidelines for now.
Edison International (EIX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
The Rosemead, California-based company reported first quarter net income of $250 million, 76 cents per share, down 16% from $299 million, or 91 cents per share, in the year-ago period. Revenue dropped 10% to $2.81 billion.
On average, Wall Street analysts expected a profit of 67 cents per share on revenue of $2.9 billion.
Edison lowered its full-year 2009 earnings guidance to a range of $1.98 to $2.51 per share, down from earlier guidance of $2.90 to $3.20, citing certain tax charges it expects to incur in the second quarter. Excluding charges, however, the company reaffirmed core earnings of $2.90 to $3.20 per share.
On average, analysts expect $3.03 per share for full-year 2009.
Edison shares rose 81 cents, or +2.7%, in late morning trading Friday.
The Bottom LineWe removed EIX from our “Recommended” list on Aug. 1, when shares were trading at $48.34. The company currently has a dividend yield of 4.16%, based on Friday’s closing stock price of $29.79. The stock has technical support at the $25 level. If the shares can firm up, we see overhead resistance around the $36 level. We would remain on the sidelines for now.
Edison International (EIX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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