Earnings Analysis for EIX: Detailed Review

Revenue Analysis

EIX has shown fluctuating revenue over the period. The Total and Operating Revenue increased from $3.70 billion in March 2023 to $4.08 billion in March 2024. Gross Profit also varied, peaking at $1.83 billion in September 2023 and then slightly decreasing to $1.75 billion by March 2024, indicating changes in the profitability of revenue generation.

Cost Management

Cost of Revenue escalated from $2.34 billion in March 2023 to a high of $2.87 billion in September 2023, before a decrease to $2.32 billion by March 2024. Operating Expenses peaked in September 2023 at $1.31 billion and later reduced to $1.49 billion by March 2024. Total Expenses followed a similar trend, marking a high in September 2023 at $4.18 billion and decreasing thereafter.

Profitability Analysis

EBITDA was highest in December 2023 at $1.60 billion, showing improved operational efficiency. Operating Income reached its peak at $814 million in the same period, while Pretax Income was recorded highest at $488 million in December 2023. Net Income varied significantly, with the highest recording at $421 million in December 2023.

Cash Flow Indicators

Reconciled Depreciation consistently increased, signifying ongoing asset depreciation. Interest Expenses were highest in September 2023 at $433 million, aligning with increased borrowings or higher interest rates during this period.

Taxation

The overall Tax Rate for Calcs varied, reaching a peak of around 21% in September 2023 and then reducing to 0.4% by March 2024. Tax Provision showed a substantial fluctuation, turning negative in September 2023 before improving significantly by March 2024.

Shareholder Metrics

There was remarkable inconsistency in EPS figures, with both Diluted and Basic EPS reaching highs of $0.92 in June 2023 and lows of -$0.03 by March 2024. Average Shares hovered around 385 million across most quarters, indicating stable equity base despite financial variability. Net Income Available to Common Stockholders showed significant variance, with the lowest at -$11 million by March 2024.

Conclusion

EIX experienced considerable volatility in its financial performance across different quarters. Revenue growth showed promise, but profitability and net income measurements indicated potential challenges in cost management and operational efficiency. Taxation variables also showed considerable instability, affecting net income results. To stabilize future earnings, a focus on enhancing operational efficiencies, better cost management, and a more reliable tax planning strategy is recommended.

Appendices

Supporting data tables and detailed calculations were considered in drafting this analysis. Data included financial metrics such as revenue, costs, EBITDA, net income, and EPS as reported over several fiscal quarters spanning 2023 to 2024. These data points were critical in assessing EIX’s financial health and operational performance.