FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Eix Q1: Rate Increase Offsets Cost Recovery Non-recurral; Growth Targets Weak

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Edison International reported Q1 2026 core EPS of $1.42 vs. $1.37 prior year, driven by 2025 General Rate Case rate relief, partially offset by the absence of $0.30 per share interest expense benefits from TKM Settlement Agreement cost recoveries. GAAP EPS declined to $1.38 from $3.73 due to the absence of $908M in prior-year non-core benefits. Operating revenue increased 7.7% to $4,103M while cash flow from operations grew 16.6% to $1,427M, though interest expense rose substantially to $524M from $301M due to capital funding requirements. Management affirmed 2026 core EPS guidance of $5.90-$6.20 and maintained confidence in 5%-7% core EPS growth from 2025 to 2030. We think the company's long-term EPS goals are overly optimistic as we forecast EPS growth closer to the 3%-4% range, suggesting EIX has the lowest earnings trajectory among peers with an 8.9% average, making even the 5%-7% target appear uncompetitive, in our view.

Related Articles

Research

Research Alert: Qiagen Cuts 2026 Outlook As Q1 Sales Miss On Weak Quantiferon Testing

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Qiagen's preliminary Q1 2026 net sales fell by 1% CER, missing the company's outlook for at least 1% growth, while reported sales grew 2% to USD492M, below consensus' USD501M. Preliminary adjusted EPS of USD0.54 was in line with the outlook, though overall results were dragged by QuantiFERON sales declining 5% CER due to reduced immigration testing demand in the U.S. and Middle East. The company downgraded 2026 guidance to 1%-2% CER sales growth (from at least 5% previously) and adjusted EPS to at least USD2.43 CER (from USD2.50 previously), expecting stronger trends in 2H, supported by acquisition benefits and sequential QuantiFERON improvement. We view the sales miss and lowered outlook as disappointing, but still see QuantiFERON as a main growth contributor, while the Parse acquisition should strengthen Qiagen's competitive position. That said, monitoring progress in other patient testing groups for QuantiFERON remains key. Full Q1 results are scheduled for May 6, 2026.

$QGEN
Research

Research Alert: Shell Agrees To Buy Arc Resources For Usd16.4b

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Shell announced the acquisition of ARC Resources for USD16.4B enterprise value, offering CAD32.80 per share (20% premium to 30-day VWAP) through 25% cash and 75% equity consideration, expected to close in 2H 2026. The transaction will immediately add 370 kboe/d production, representing a substantial 20% increase to Shell's current 1.8M boe/d output. We believe the deal establishes Canada as a core operating region and accelerates Shell's production CAGR from 1% to 4% through 2030. Management expects USD250M in annual synergies while maintaining USD20B-USD22B capex guidance and 40%-50% cash flow distribution policy. However, Shell is paying USD44k per boe/d at the higher range of recent Canadian E&P multiples, with 75% equity consideration diluting existing shareholders by 3% and delaying free cash flow accretion until 2027. In our view, value creation will depend on Shell achieving operational improvements materially beyond stated synergies while maintaining capital efficiency metrics.

$SHEL
Research

Research Alert: Nucor Posts Strong Q1, Beats On Revenue And Eps

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Nucor reported Q1 2026 adjusted EPS of $3.23, significantly above $0.77 prior year and beating consensus by $0.41, with revenues of $9.50B exceeding estimates by 7.1%. Steel mills posted record quarterly shipments of 7.0M tons with segment earnings more than doubling sequentially to $1.128B as external pricing improved to $1,074 per ton (+14% Y/Y) and utilization climbed to 86%. We believe operational execution remains strong across segments, with steel products earnings rising 24% sequentially and broad-based volume recovery evident. Management guided for higher Q2 earnings across all segments on price improvement and stable to growing volumes. With capex declining 18% sequentially to $661M and $2.48B in cash, Nucor returned $250M to shareholders with $3.97B remaining under buyback authorization. We expect accelerating free cash flow generation will support enhanced shareholder returns, though valuation ultimately depends on pricing power persistence amid upcoming industry capacity additions in 2027.

$NUE