NYSE$AVA

Avista Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported net income for the third quarter of 2021 and confirmed 2021 and 2023 consolidated guidance, while lowering 2022 consolidated guidance.

Avista Corp. reported a net income of $14.4 million, or $0.20 per diluted share, for the third quarter of 2021, compared to $4.9 million, or $0.07 per diluted share, for the third quarter of 2020. The company confirmed its consolidated earnings guidance for 2021 and 2023 but lowered the consolidated guidance for 2022.

  • Net income for Q3 2021 was $14.4 million, or $0.20 per diluted share, up from $4.9 million, or $0.07 per diluted share, in Q3 2020.
  • Avista Utilities' earnings were above expectations for the third quarter, mainly due to the timing of recognition of income taxes.
  • AEL&P's earnings are on track to meet the full-year guidance.
  • Consolidated earnings guidance for 2021 is confirmed at $1.96 to $2.16 per diluted share, and for 2023 at $2.42 to $2.62 per diluted share.

Headline financials

Total Revenue

$296M

Previous: $273M+8.6%
EPS (adj)

$0.20

Previous: $0.07+185.7%
Capital Expenditures

-$323M

Previous: -$298M-8.4%
Free Cash Flow

-$308M

Previous: -$293M-5.3%
Net Income

$14.4M

Previous: $4.88M+194.6%
Operating Income

$24.2M

Previous: $28.5M-15.0%
Gross Profit

$296M

Previous: $273M+8.6%
Cash & Equivalents

$19.2M

Previous: $84.7M-77.3%
Total Assets

$6.73B

Previous: $6.28B+7.1%
Stock-Based Comp

$893K

Previous: $879K+1.6%

Revenue & EPS history

Avista · Revenue · Quarterly

$296M

Q3 2021+8.6%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Avista Corp. confirmed its 2021 consolidated earnings guidance with a range of $1.96 to $2.16 per diluted share. The company lowered its 2022 consolidated earnings guidance by $0.10 per dilutive share to a range of $1.93 to $2.13 per diluted share and confirmed its 2023 consolidated earnings guidance with a range of $2.42 to $2.62 per diluted share.

Tailwinds

  • Timely and appropriate rate relief in our jurisdictions.
  • Avista Utilities is expected to contribute in the range of $1.83 to $1.97 per diluted share for 2021.
  • Expect to be above the top end of the range of $0.05 to $0.08 per diluted share for the other businesses.
  • For 2021, AEL&P is expected to contribute in the range of $0.08 to $0.11 per diluted share.
  • Next Washington general rate cases will be a multiyear rate plan as required under a new law, and will seek to include in rates all capital investment and projected increased operating costs in order to earn our allowed return by 2023.

Headwinds

  • Impact of the ERM in 2021, we expect to be near the bottom end of the range for Avista Utilities.
  • Current expectation for the ERM is a surcharge position within the 90 percent customer/10 percent Company sharing band, which is expected to decrease earnings by $0.09 per diluted share.
  • Guidance assumes, among other things, timely and appropriate rate relief in our jurisdictions.
  • Our outlook assumes, among other variables, normal precipitation, temperatures, and other operating conditions.
  • Guidance does not include the effect of unusual or non-recurring items until the effects are known and certain.

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 2021

Historical avgQ3 2021

-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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