NYSE$AVA

Avista Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Avista Corp. reported increased net income and earnings per share for Q4 2020 compared to Q4 2019.

Avista Corp. reported net income attributable to Avista Corp. shareholders of $58.7 million, or $0.85 per diluted share, for the fourth quarter of 2020, compared to $50.8 million, or $0.76 per diluted share for the fourth quarter of 2019. The company is initiating its 2021, 2022, and 2023 earnings guidance with consolidated ranges of $1.96 to $2.16 per diluted share in 2021, $2.18 to $2.38 per diluted share in 2022, and $2.42 to $2.62 per diluted share in 2023.

  • Net income attributable to Avista Corp. shareholders was $58.7 million for Q4 2020, compared to $50.8 million for Q4 2019.
  • Earnings per diluted share were $0.85 for Q4 2020, compared to $0.76 for Q4 2019.
  • Avista Utilities earnings were better than expectations due to higher utility margin and lower income taxes, partially offset by higher operating expenses.
  • AEL&P’s earnings exceeded expectations due to higher sales volumes to residential customers resulting from cooler weather than the prior year and lower operating costs resulting from COVID-19 related operational restrictions.

Headline financials

Total Revenue

$368M

Previous: $353M+4.2%
EPS (adj)

$0.85

Previous: $0.76+11.8%
Capital Expenditures

$106M

Previous: $122M-12.4%
Free Cash Flow

-$58M

Previous: -$63.8M+9.1%
Net Income

$58.7M

Previous: $50.8M+15.7%
Operating Income

$87.1M

Previous: $73.3M+18.8%
Gross Profit

$258M

Previous: $249M+3.8%
Cash & Equivalents

$14.2M

Previous: $9.9M+43.5%
Total Assets

$6.4B

Previous: $6.08B+5.3%
Stock-Based Comp

$2.14M

Previous: $2.4M-10.9%

Revenue & EPS history

Avista · Revenue · Quarterly

$368M

Q4 2020+4.2%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Avista Corp. is initiating its 2021, 2022, and 2023 earnings guidance with consolidated ranges of $1.96 to $2.16 per diluted share in 2021, $2.18 to $2.38 per diluted share in 2022, and $2.42 to $2.62 per diluted share in 2023.

Tailwinds

  • Timely and appropriate rate relief in our jurisdictions is assumed.
  • Filed general rate cases in Washington and Oregon.
  • Filed general rate cases in Idaho in January of 2021.
  • Expect these cases to provide rate relief in 2021 and start reducing regulatory lag.
  • Anticipate a return to 4 to 6 percent growth following 2023.

Headwinds

  • Experienced regulatory lag during 2020 and expect this to continue through the end of 2022.
  • Unrecovered structural costs estimated to reduce the return on equity by approximately 70 basis points.
  • Regulatory timing lag estimated to reduce the return on equity by approximately 100 basis points.
  • Expect to experience increased costs in 2021 associated with exploring strategic business opportunities.
  • Cannot predict the duration and severity of the COVID-19 global pandemic.

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 Q4 2020

Historical avgQ4 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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