Edison International beats profit estimates on lower expenses, rate hikes
April 29 (Reuters) - Edison International (EIX.N), opens new tab beat Wall Street estimates for first-quarter profit on Tuesday, as the utility benefited from lower operating and interest expenses and higher rates for its services.
Lower interest rates reduce borrowing costs for power companies, which usually need more capital for expenses such as maintaining and upgrading the electric grid.
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Interest expenses at Edison fell 32.2% to $301 million in the first quarter, while total operating expenses fell 56.2% to $1.7 billion.
Power bills are expected to go up as fresh power supply struggles to keep up with rising demand from AI data centers, increased domestic manufacturing and extreme weather conditions like wildfires.
Southern California Edison (SCE), Edison's unit, has been facing multiple lawsuits which allege that its electrical equipment started one of the major wildfires in the Los Angeles area – the Eaton fire.
"We are working closely with state and county leaders and the communities of Altadena and Malibu to rebuild wildfire-impacted areas," CEO Pedro Pizarro said.
"Once constructed, SCE's grid hardening in these areas will increase reliability and reduce the exposure of electrical distribution infrastructure to high wind and other extreme weather events" Pizarro added.
The company reaffirmed its full-year 2025 forecast for adjusted earnings in a range of $5.94 per share to $6.34 per share. Analysts have estimated them at $6.01 per share.
The Rosemead, California-based company posted an adjusted profit of $1.37 per share for the quarter ended March 31, compared with analysts' estimate of $1.20 per share, according to data compiled by LSEG.
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