Edison International (EIX) Q4 2022 Earnings Call Transcript

Edison International (NYSE:EIX) Q4 2022 Earnings Conference Call February 23, 2023 4:30 PM ET

Company Participants

Sam Ramraj - Vice President of Investor Relations

Pedro Pizarro - President and Chief Executive officer

Maria Rigatti - Executive Vice President and Chief Financial Officer

Steven Powell - President and Chief Executive Officer of Southern California Edison

Conference Call Participants

Shar Pourreza - Guggenheim Partners

Angie Storozynski - Seaport

Steve Fleishman - Wolfe Research

Ryan Levine - Citi

Gregg Orrill - UBS

Nicholas Campanella - Credit Suisse

David Arcaro - Morgan Stanley

Julien Dumoulin-Smith - Bank of America

Operator

Good afternoon, and welcome to the Edison International Fourth Quarter 2022 Financial Teleconference. My name is Ted, and I will be your operator today. [Operator Instructions] Today's call is being recorded.

I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. Ramraj, you may begin your conference.

Sam Ramraj

Thank you, Ted, and welcome, everyone. Our speakers today are President and Chief Executive officer, Pedro Pizarro; and Executive Vice President and Chief Financial Officer, Maria Rigatti. Also on the call are other members of the management team.

Materials supporting today's call are available at www.edisoninvestor.com. These include Form 10-K, prepared remarks from Pedro and Maria, and the teleconference presentation. Tomorrow we will distribute our regular business update presentation.

During the call, we will make forward-looking statements about the outlook for Edison International and its subsidiaries. Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings. Please read these carefully.

The presentation includes certain outlook assumptions as well as reconciliation of non-GAAP measures to the nearest GAAP measure.

During the question-and-answer session, please limit yourself to one question and one follow-up.

I will now turn the call over to Pedro.

Pedro Pizarro

Well, thanks a lot, Sam, and good afternoon, everybody.

I am pleased to report that Edison International's core EPS for 2022 was $4.63, which was in the upper end of our initial guidance range. Today, we are introducing 2023 EPS guidance of $4.55 to $4.85 and we are reinforcing our strong confidence in delivering our long-term EPS growth target of 5% to 7% from 2021 through 2025. Maria will discuss our financial performance and outlook.

Let's start with our key accomplishments in 2022, and they are noted on Page 3. First, we once again delivered on our annual EPS guidance, as I just mentioned. Second, SCE continued to make tremendous progress in reducing wildfire risk and PSPS. SCE successfully executed its wildfire mitigation plan and updated the key statistic shown on Page 5; that is that SCE now estimates it has reduced the probability of losses of catastrophic wildfires by 75% to 80% compared to pre-2018 levels, and critically with much lower reliance on PSPS, now only 15%, as hardening and other mitigations continue, as depicted on Page 6.