Edison profit slips on healthcare-reform costs; PG&E beats expectations

Edison International said Friday that its first-quarter net income fell as it recorded a charge to reflect the recently enacted federal healthcare overhaul.

The power company, parent of Southern California Edison, reported net income of $236 million, or 72 cents a share, for the quarter that ended March 31, compared with $250 million, or 76 cents, a year earlier. Revenue was flat at $2.81 billion.

Excluding a charge of 12 cents for the healthcare changes and a one-time gain of 2 cents, the company said it would have earned 82 cents a share, compared with 79 cents in last year’s first quarter.

Analysts surveyed by Thomson Reuters expected net income of 78 cents a share on revenue of $3.08 billion.

Edison International and other companies currently receive a government subsidy to keep prescription drug benefits for retirees. They have been able to deduct their expenses, but that ends in 2013 under the recently passed healthcare legislation.

Companies are announcing charges now because accounting rules say they have to book them during the period a new law is enacted.

The company maintained its 2010 profit guidance of $3.15 to $3.45 a share, excluding charges. Wall Street is looking for $3.31.

California’s biggest utility, PG&E Corp., posted net income of $258 million, or 67 cents a share, up from $241 million, or 65 cents, a year earlier. Excluding one-time items, profit came to $303 million, or 79 cents. Revenue rose to $3.48 billion from $3.43 billion.

Analysts polled by FactSet Research expected a profit of 72 cents a share on sales of $3.34 billion. PG&E also reaffirmed its outlook for the year.