NYSE$AVA

Avista Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a net loss due to higher interest costs and increased operating expenses at Avista Utilities, partially offset by AEL&P meeting expectations.

Avista Corp. reported a net loss of $5.8 million for Q3 2022, compared to a net income of $14.4 million in Q3 2021. The decrease was primarily due to higher interest costs and increased operating expenses at Avista Utilities. The company lowered its 2022 and 2023 consolidated earnings guidance.

  • Q3 2022 net loss was $5.8 million, or a loss of $0.08 per diluted share, compared to net income of $14.4 million, or earnings of $0.20 per diluted share, for Q3 2021.
  • Avista Utilities' results were below expectations due to higher interest costs and increased operating expenses.
  • AEL&P continued to meet expectations in 2022 and remains on track to meet full year guidance.
  • 2022 consolidated earnings guidance lowered by $0.05 per diluted share to a range of $1.88 to $2.08 per diluted share.

Headline financials

Total Revenue

$359M

Previous: $296M+21.4%
EPS (adj)

-$0.08

Previous: $0.20-140.0%
Capital Expenditures

-$331M

Previous: -$323M-2.6%
Free Cash Flow

-$337M

Previous: -$308M-9.3%
Net Income

-$5.8M

Previous: $14.4M-140.4%
Operating Income

$19.4M

Previous: $24.2M-19.9%
Gross Profit

$359M

Previous: $296M+21.4%
Cash & Equivalents

$14.4M

Previous: $19.2M-25.3%
Total Assets

$7.06B

Previous: $6.73B+4.8%
Stock-Based Comp

$3.14M

Previous: $893K+251.7%

Revenue & EPS history

Avista · Revenue · Quarterly

$359M

Q3 2022+21.4%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Avista Corp lowered its 2022 consolidated earnings guidance by $0.05 per diluted share to a range of $1.88 to $2.08 per diluted share and also lowered its 2023 consolidated earnings guidance by $0.15 per diluted share to a range of $2.27 to $2.47 per diluted share.

Tailwinds

  • Assumes timely and appropriate rate relief in all of our jurisdictions, including approval of the 2022 Washington general rate case settlement.
  • AEL&P to contribute in the range of $0.08 to $0.10 per diluted share for each of 2022 and 2023.
  • AEL&P's interim and refundable base rate increase of 4.5 percent associated with their 2022 general rate case was approved and became effective in September 2022.
  • Continue to expect the other businesses to contribute in the range of $0.14 to $0.16 per diluted share in 2022, with increased net investment gains during the year.
  • Expect our other businesses to contribute in the range of $0.04 to $0.06 per diluted share in 2023.

Headwinds

  • Rising interest rates and operating costs.
  • Expect increases in borrowing costs, pension expense, and depreciation.
  • Avista Utilities to contribute in the range of $1.66 to $1.82 per diluted share for 2022, a decrease from the previous range of $1.71 to $1.87 per diluted share.
  • 2022 forecast for the ERM is an expense position within the 90 percent customer/10 percent Company sharing band, which is expected to reduce earnings by $0.09 per diluted share.
  • Expect a range of $2.15 to $2.31 per diluted share for 2023, a decrease from the previous range of $2.30 to $2.46 per diluted share.

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 2022

Historical avgQ3 2022

-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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