Edison International Swings to Profit Despite Revenue Drop

   By Anna Prior 
 

Edison International (EIX) swung to a fourth-quarter profit as the year-earlier period included larger losses from discontinued operations, masking a drop in revenue.

The company in October agreed to sell its Edison Mission Energy business, which filed for Chapter 11 bankruptcy protection in 2012, to NRG Energy Inc. (NRG). Bondholders supported the $2.6 billion deal, and a bankruptcy judge approved bidder protections, including a $65 million breakup fee, to NRG as it works to close its offer to take Edison Mission out of bankruptcy this year. In the third quarter, the company reported Edison Mission's results as noncore, discontinued operations.

Overall, Edison International reported a profit of $326 million, or 92 cents a share, compared to a year-earlier loss of $514 million. Core per-share earnings, excluding an 11 cent per-share impact from discontinued operations, were 81 cents, down from $1.79 in the year-ago period.

Revenue slipped 3.8% to $2.94 billion.

Analysts polled by Thomson Reuters had projected an adjusted profit of 67 cents a share and revenue of $2.59 billion.

Operating expenses rose 6.2%.

Looking ahead, the estimated core earnings for the year of $3.60 to $3.80 a share. Analysts were looking for a per-share profit of $3.60.

Shares edged up seven cents to $51.31 in recent after-hours trading. Through Tuesday's close, the stock has risen 12% in the last 12 months.

Write to Anna Prior at [e-mail]

Order free Annual Report for Edison International

Visit http://djnweurope.ar.wilink.com/?ticker=US2810201077 or call [phone]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires