NYSE$AVA

Avista Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported net income attributable to Avista Corp. shareholders and revised 2020 earnings guidance.

Avista Corp. reported a decrease in net income for Q1 2020 compared to Q1 2019, primarily due to the impact of Washington regulatory decisions and increased operating costs. The company is lowering its consolidated earnings guidance for the year to reflect regulatory items, expected net impacts from COVID-19, and losses at its non-utility businesses.

  • Net income attributable to Avista Corp. shareholders was $48.4 million, or $0.72 per diluted share for Q1 2020, compared to $115.8 million, or $1.76 per diluted share for Q1 2019.
  • Consolidated earnings were below expectations due to the impact of Washington regulatory decisions, as well as increased operating costs.
  • The company is lowering its consolidated earnings guidance for the year to a range of $1.75 to $1.95 per diluted share.
  • COVID-19 is impacting all aspects of the business, with expectations of decreased retail loads and payments from customers.

Headline financials

Total Revenue

$390M

Previous: $396M-1.6%
EPS (adj)

$0.72

Previous: $1.76-59.1%
Capital Expenditures

-$95.5M

Previous: -$93.6M-2.0%
Free Cash Flow

-$47.1M

Previous: $22.2M-312.4%
Net Income

$48.4M

Previous: $116M-58.2%
Operating Income

$82.2M

Previous: $67.1M+22.5%
Gross Profit

$390M

Previous: $396M-1.6%
Cash & Equivalents

$18.9M

Previous: $14.9M+27.3%
Total Assets

$6.17B

Previous: $5.89B+4.8%
Stock-Based Comp

$872K

Previous: $4.85M-82.0%

Revenue & EPS history

Avista · Revenue · Quarterly

$390M

Q1 2020-1.6%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Avista Corp. is lowering its 2020 earnings guidance to a consolidated range of $1.75 to $1.95 per diluted share.

Tailwinds

  • Efforts to identify cost reduction opportunities are expected to mostly offset COVID-19 impacts at Avista Utilities.
  • Filed for deferred accounting treatment of net COVID-19 expenses in each jurisdiction.
  • Expects to be in a benefit position under the ERM within the 90 percent customer/10 percent Company sharing band, which is expected to add $0.07 per diluted share.
  • Filed a general rate case in Oregon in March 2020.
  • Anticipate filing in Washington and Idaho in the fourth quarter of 2020.

Headwinds

  • Revised guidance includes $0.10 per diluted share of expenses recorded in the first quarter related to Washington Commission orders.
  • Revised guidance includes $0.02 per diluted share for COVID-19 at Avista Utilities.
  • Lowering guidance for AEL&P by $0.01 per diluted share.
  • Lowering guidance for the other businesses by $0.07 per diluted share.
  • Extended the estimated timeframe of earning close to authorized rates of return from 2022 to 2023 due to the expected economic recession and anticipated delays in rate case filings as a result of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.0%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.3%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+8.4%

Q3 2023

Best reaction

-10.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-4.6%-6.4%-6.4%
Q3 2025+2.6%+6.3%+0.1%
Q2 2025-4.2%-2.3%-3.6%
Q1 2025-1.7%-6.1%-10.7%
Q4 2024+3.3%+3.3%+6.1%
Q3 2024-1.8%+1.9%+0.1%
Q1 2024+2.3%+3.9%+2.8%
Q4 2023+0.1%-2.1%-0.8%
Q3 2023+8.4%+10.3%+10.2%
Q2 2023+0.6%-1.2%-11.1%
Q1 2023+1.4%+1.7%-4.7%
Q4 2022+2.5%+1.7%+1.1%
Q3 2022-10.1%-9.5%+0.9%
Q2 2022+0.1%-1.0%-5.4%
Q1 2022+1.8%+5.6%+7.2%
Q4 2021+2.1%+5.0%+5.5%
Q3 2021-1.0%-0.8%-2.1%
Q2 2021-2.5%-4.2%-4.1%
Q1 2021+2.4%+2.8%-2.9%
Q4 2020+4.6%+2.5%+24.3%
Q3 2020-3.1%+3.0%+7.3%
Q2 2020-0.1%+3.1%+0.4%
Q1 2020-1.5%-9.4%-1.1%
Q4 2019-1.0%+1.2%-16.6%
Q3 2019-1.3%-2.3%-0.0%
Q2 2019+2.5%+2.2%+4.6%
Q1 2019+3.1%+2.6%-1.2%
Q4 2018-1.3%-1.2%-1.0%
Q3 2018+0.8%+0.8%-15.6%
Q2 2018-0.1%+0.5%+1.4%
Q1 2018-0.4%-0.3%+0.8%
Q4 2017-1.0%-1.6%+3.5%
Q3 2017-0.6%-0.8%-0.6%
Q2 2017-1.0%-0.7%-2.3%
Q1 2017+2.0%+3.5%+9.3%
Q4 2016-0.5%+1.0%+0.8%
Q3 2016-3.6%-3.3%-3.0%
Q2 2016-0.9%-2.3%-4.8%
Q1 2016+1.6%
Q4 2015+4.1%
Q3 2015+2.6%
Q2 2015+0.7%
Q1 2015-1.2%
Q4 2014-1.5%
Q3 2014-1.8%
Q2 2014+0.1%
Q1 2014+3.6%
Q4 2013-0.5%
Q3 2013+0.2%
Q2 2013+2.2%
Q1 2013+1.5%
Q4 2012-2.0%
Q3 2012-2.1%
Q2 2012-4.5%
Q1 2012-2.5%
Q4 2011-0.6%
Q3 2011-1.4%
Q2 2011-9.6%
Q1 2010+3.5%
Q1 2011+1.6%
Q4 2008+1.0%
Q4 2010+1.0%
Q3 2010+0.0%
Q3 2009+0.0%
Q2 2009+0.9%
Q4 2009+0.9%
Q2 2010+0.9%

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