NYSE$AVA

Avista Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income attributable to Avista Corp. shareholders for the third quarter of 2020.

Avista Corp. reported net income attributable to Avista Corp. shareholders of $4.9 million, or $0.07 per diluted share for the third quarter of 2020, compared to $5.1 million, or $0.08 per diluted share for the third quarter of 2019. The company confirmed its consolidated earnings guidance for the year in the range of $1.75 to $1.95 per diluted share.

  • Third quarter consolidated earnings were below expectations, primarily due to higher bad debt expense for Avista Utilities.
  • AEL&P’s earnings were on track for the third quarter and is expected to meet full year expectations.
  • Other businesses met expectations primarily from investment gains, which mostly offset other operating expenses.
  • The company filed electric and natural gas rate cases in Washington that will provide benefit to shareholders without increasing customer bills.

Headline financials

Total Revenue

$273M

Previous: $284M-3.9%
EPS (adj)

$0.07

Previous: $0.08-12.5%
Effective Tax Rate (Q3)

15.0%

Previous: -2.6%+676.9%
Capital Expenditures

-$298M

Previous: -$321M+7.2%
Free Cash Flow

-$293M

Previous: -$316M+7.3%
Net Income

$4.88M

Previous: $5.09M-4.2%
Operating Income

$28.5M

Previous: $30.2M-5.8%
Gross Profit

$273M

Previous: $284M-3.9%
Cash & Equivalents

$84.7M

Previous: $14.5M+486.3%
Total Assets

$6.28B

Previous: $5.96B+5.3%
Stock-Based Comp

$879K

Previous: $1.94M-54.7%

Revenue & EPS history

Avista · Revenue · Quarterly

$273M

Q3 2020-3.9%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

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

Tailwinds

  • The company expects to be near the midpoint of the consolidated earnings guidance.
  • The ERM is offsetting lower utility margin and higher operating costs.
  • COVID-19 impacts at Avista Utilities are expected to be mostly offset by tax benefits from the CARES Act.
  • Regulatory deferrals will help offset COVID-19 expenses.
  • The company is identifying cost reduction opportunities.

Headwinds

  • Avista Utilities is experiencing increased operating expenses, including bad debt, due to COVID-19.
  • Avista Utilities is experiencing increased interest expense.
  • The company continues to expect to experience regulatory lag until 2023.
  • Lower utility margin.
  • Higher operating costs.

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 Q3 2020

Historical avgQ3 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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