EIX 3Q2017: Strong 3Q17 performance lifts guidance; Focus on 2018 GRC

Management is showing confidence by again raising 2017FY AEPS guidance this time by about $0.05
Waiting on PD for 2018 GRC; FD unlikely in 2017
Strong execution, strategic evolution and focus on core strengths makes for attractive investment
Strategically, we like focus on utility projects with minimal distractions
Renewable integration’s challenging but no big surprises, yet.
Dividend payout ratio has caught up to earnings power of SCE logging-in at some 51%
LT investments should drive LT AEPS CAGR above 7%-9% forecast range, in our opinion

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EIX: Edison Energy Services (EES): Molehill trying to become an anthill with potential to become a hillock; we like approach but endgame’s murky

At present, EES is inconsequential to EIX and its shareholders and looks to remain that way:
By 2019 yearend, EIX expects EES to be breakeven:
The strategy behind EES for EIX is simple to explain:
Proof of concept by yearend 2019:
Absolutely, no additional capital investments in the next 18-months:
Conclusions: We believe that EIX will be successful …
Risk, like most things, is in the execution:

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