Edison International beats profit estimates on electricity rate hikes

Edison International EIX beat Wall Street estimates for second-quarter profit on Thursday, helped by electricity rate hikes, sending shares of the company up 1.3% after the bell.

Utility companies use General Rate Case (GRC) proceedings to increase consumer electricity prices. The proceedings are initiated by regulated utilities to allege a revenue shortfall and ask for an increase in rates on the basis of its total cost of providing services.

Rosemead, California-based Edison said its core profit increased due to higher revenue authorized in a rate case.

Its revenue rose to $4.34 billion in the April-June quarter, from $3.96 billion a year ago.

Edison International is the holding company of Southern California Edison Company (SCE) and Edison Energy Group. SCE serves roughly 15 million customers across southern, central and coastal regions of the state.

The company reaffirmed its full-year core profit forecast of $4.75 to $5.05 per share. Analysts were expecting $4.98, according to LSEG data.

Its quarterly adjusted profit of $1.23 per share beat estimates of $1.07.