Edison International: Look Ahead to the June 2009 Quarterly Results

Edison International (EIX) reported that earnings in the first quarter fell from $0.91 per share to $0.76. This result kept the GCFR Overall Gauge of Edison in the low-30's, a weak score but better than it had been.

Our analysis report reviewed the first quarter in some detail. In summary, lower energy prices, especially for natural gas, reduced Edison's costs for fuel, purchased power, etc., by 13.5 percent. Revenue fell only 9.7 percent, however, and this gap had the beneficial effect of increasing Gross Margin profitability by a substantial 3 percent, from 29.6 percent to 32.6 percent.