Narrative Recalibration: From Growth to Caution#

The Sharp Reversal in Expectations#

In the space of a single trading day, the market's expectations for EIX's near-term earnings trajectory have undergone a jarring reversal. Yesterday's bullish assessment, built around analyst consensus projecting 23.3 per cent full-year earnings growth, has given way to a starkly different picture: Zacks Investment Research now estimates that Edison International will report a year-over-year earnings decline of 21.2 per cent in the third quarter of 2025, delivering earnings per share of $1.19 against prior-year results of $1.51. That forecast swing—a 44.5 percentage-point arc from +23.3 per cent annual growth to -21.2 per cent quarterly contraction—epitomises the hazards of building investment theses on consensus estimates that prove fragile when tested against emerging reality. For institutional shareholders who read yesterday's optimistic narrative surrounding Edison as a rare utility combining value, growth, and dividend appeal, today's revised consensus presents an uncomfortable truth: the company may face a near-term earnings disappointment precisely when multiple expansion was supposed to validate the prior thesis.