NYSE$AVA

Avista Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported net income ahead of expectations due to cost management and timing of certain expenses, but impacted by higher ERM costs in Washington due to poor hydro conditions.

Avista Corp. reported a net income of $17.5 million, or $0.23 per diluted share, for the second quarter of 2023, compared to $11.5 million, or $0.16 per diluted share, for the second quarter of 2022. The company is confirming its 2023 consolidated earnings guidance with a range of $2.27 to $2.47 per diluted share.

  • Second quarter results exceeded expectations due to effective cost management.
  • Constructive outcomes reached in Idaho rate cases, with Oregon rate case settlement in line with expectations.
  • AEL&P is performing as expected and on track to meet full-year guidance.
  • 2023 consolidated earnings guidance confirmed at $2.27 to $2.47 per diluted share, but expected to be at the lower end due to higher ERM costs.

Headline financials

Total Revenue

$369M

Previous: $379M-2.6%
EPS (adj)

$0.23

Previous: $0.16+43.8%
Capital Expenditures

$126M

Previous: -$211M+159.9%
Free Cash Flow

$49.1M

Previous: -$199M+124.6%
Net Income

$17.5M

Previous: $11.5M+52.7%
Operating Income

$43.8M

Previous: $24.3M+80.4%
Gross Profit

$239M

Previous: $379M-36.9%
Cash & Equivalents

$15.7M

Previous: $21.6M-27.4%
Total Assets

$7.37B

Previous: $6.94B+6.2%
Stock-Based Comp

$3.24M

Previous: $1.8M+79.8%

Revenue & EPS history

Avista · Revenue · Quarterly

$369M

Q2 2023-2.6%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Avista Corp. is confirming its 2023 consolidated earnings guidance with a range of $2.27 to $2.47 per diluted share, with Avista Utilities contributing in the range of $2.15 to $2.31 per diluted share. We expect to be in the lower end of these ranges as a result of higher costs under the ERM.

Tailwinds

  • Timely and appropriate rate relief in all of our jurisdictions.
  • Tax credits will be fully returned to customers by the end of the third quarter of 2023.
  • Increase in utility margin is expected in the third and fourth quarters of 2023.
  • AEL&P is expected to contribute in the range of $0.08 to $0.10 per diluted share.
  • Other businesses are expected to contribute in the range of $0.04 to $0.06 per diluted share.

Headwinds

  • Expect to be in the lower end of guidance range due to higher costs under the ERM.
  • Expect to be in the 90 percent customer/10 percent Company sharing band, resulting in a decrease to earnings of $0.08 per diluted share.
  • Lower than normal hydroelectric generation for the year.
  • Record-high temperatures in May caused snowpack to melt faster than expected.
  • One of the worst years for hydroelectric generation.

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 Q2 2023

Historical avgQ2 2023

-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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