Edison International

Earnings Performance: Edison International reported a solid fourth quarter with a core EPS of $1.05, and a full year core EPS of $4.93, exceeding the midpoint of their guidance range. This marks a consistent track record of meeting or exceeding annual EPS guidance over the last two decades, reinforcing investor confidence.

Wildfire Impact and Liability: The ongoing investigation into the Eaton fire has raised concerns regarding potential liabilities linked to SCE's equipment. The outcome remains uncertain, and while the financial impact from the wildfire is undetermined, it highlights the risks associated with utility operations in high-fire risk areas. The legislative framework AB 1054 aims to mitigate these impacts by providing a liability cap and access to the wildfire fund for claims payments.

Regulatory Developments: The company secured a positive regulatory outcome with the CPUC's approval of the TKM settlement, allowing SCE to recover approximately $1.6 billion in wildfire claims. This approval underlines a constructive cost recovery framework in California and support for future claims under similar circumstances.