Home » Edison stock turns volatile under wildfire scrutiny – Jobsmaa.com

Edison stock turns volatile under wildfire scrutiny – Jobsmaa.com

0 comments

Southern California's devastating wildfires rocked the stock of Edison International, the parent company of Southern California Edison, amid accusations and lawsuits over the utility's possible role in starting the fires.

Shares of Edison International closed Thursday at $61.16 — nearly flat with Wednesday — after falling 23% this month, making it one of the worst performers on the S&P 500. The rebound came after analysts at Lautenburg Thalmann upgraded their rating on the stock. A target of $56.50 a share reflected the worst-case scenario, neutralizing the effects associated with the current wildfires from selling.

“At this time, it is too early to determine what the effects of the fires will be on the California Wildfire Insurance Fund's solvency and/or Edison International's future earnings,” analysts wrote in Baron's opinion. “An initial assessment of SCE's role in fire initiation will not occur until the summer of 2025 at the earliest.”

State legislatures were established Forest Fire Fund Ratings agencies threatened to downgrade California's investor-owned utilities in the wake of wildfires several years ago after Wall Street investors lost confidence.

Market analyst Zacks downgraded Edison International's stock to neutral from outperform last week after the fire started. Zacks predicted that Edison's operating income would increase in 2025 and 2026, while acknowledging that “the company is incurring significant wildfire-related costs” and that “higher-than-expected abatement costs could impact the company's operating results.”

Another analyst, RBC Capital Markets, had a bullish view on Edison in October, calling it a “high-quality operator leveraging best-in-class mitigation efforts with investor confidence around wildfire risk.”

The fire's downfall was a sudden setback for a company that had been on the rise in recent months. In its most recent quarterly report, the company reported a profit of $516 million, or $1.33 per share, compared with $155 million, or 40 percent, in the third quarter last year.

“Our team has achieved significant success in managing unprecedented climate challenges over the past several years, making our operations more resilient and positioning us strongly for growth going forward.” President Pedro J. Pizarro said in the statement.

Fire companies are investigating whether downed Southern California Edison utility equipment contributed to igniting the 800-acre Hurst Fire near Sylmar, company officials have acknowledged.

Company issued a statement On Friday Hurst said a downed conductor had been found on a tower near the fire, but “it is not known whether the damage seen occurred before or after the fire started”. According to the California Department of Forestry and Fire Protection, the fire is almost completely contained.

SCE is under investigation for possible involvement in fueling the Eaton Fire, which burned 14,000 acres and destroyed thousands of buildings, destroying the entire landscape of Altadena, where at least 17 people died in the blaze.

On Tuesday, Newport Beach law firm Bridgford, Gleason & Ordinian Filed a mass action complaint v. SCE in Los Angeles County Superior Court Eaton Fire On behalf of the victims, including Jeremy Kursey, the Altadena property was destroyed in the fire.

“Based on our investigation, our discussions with various consultants, SCE's public statements and video evidence of the fire's origin, we believe that the Eaton Fire was ignited by SCE's failure to de-energize its overhead wires running through Eaton Canyon. A red flag was issued by the National Weather Service the day before the fire was ignited. Despite the PDS wind warning,” lawyer Richard Bridgford said in a statement.

Pacific Gas & Electric Co. And the firm said it has represented more than 10,000 California fire victims in past lawsuits against SCE. Bridgford told Yahoo Finance that Southern Californians are in her inbox trying to get involved in the Eaton fire case, and she expects “hundreds of people to join.”

The most serious level of a red flag fire warning is an “extremely dangerous situation.” He returned Wednesday morning to parts of Los Angeles and Ventura counties. Concerns are mounting about the possibility of new fires.

Los Angeles Fire Chief Christine Crowley said during a news conference Wednesday that “the danger is not over yet.” “So put your safety first.”

You may also like

About Us

We’re a media company. We promise to tell you what’s new in the parts of modern life that matter. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. Sed consequat, leo eget bibendum sodales, augue velit.

@2024 – All Right Reserved.