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Sep 30, 2020
Avista Q3 2020 Earnings Report
Reported net income attributable to Avista Corp. shareholders for the third quarter of 2020.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
Avista Corp. is confirming its 2020 earnings guidance to a consolidated range of $1.75 to $1.95 per diluted share.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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