Avista Q4 2019 Earnings Report
Key Takeaways
Avista Corp. reported a net income of $50.8 million, or $0.76 per diluted share, for the fourth quarter of 2019, compared to $45.8 million, or $0.70 per diluted share, for the fourth quarter of 2018. The company also initiated its 2020 earnings guidance with a consolidated range of $1.95 to $2.15 per diluted share.
Net income attributable to Avista Corp. shareholders increased to $50.8 million in Q4 2019 from $45.8 million in Q4 2018.
Earnings per diluted share attributable to Avista Corp. shareholders rose to $0.76 in Q4 2019 from $0.70 in Q4 2018.
Avista Utilities reported a net income of $44.9 million in Q4 2019, compared to $43.1 million in Q4 2018.
The company initiated its 2020 earnings guidance with a consolidated range of $1.95 to $2.15 per diluted share.
Avista
Avista
Forward Guidance
Avista Corp. initiated its 2020 earnings guidance with a consolidated range of $1.95 to $2.15 per diluted share. This guidance assumes approval of their partial general rate case settlement by the Washington Commission.
Positive Outlook
- Earnings guidance represents over 9 percent growth from the mid-point of the original 2019 guidance, excluding the effects of Hydro One.
- Expect rate relief in 2020 from general rate cases in Washington, Idaho, and Oregon.
- Striving to reduce the regulatory timing lag and more closely align earned returns with those authorized by 2022.
- Anticipate an annual earnings growth rate of 9 percent to 10 percent from 2020 to 2022.
- Expect AEL&P to contribute in the range of $0.08 to $0.12 per diluted share for 2020.
Challenges Ahead
- Expect regulatory lag to continue through the end of 2021.
- 2020 earnings guidance range reflects unrecovered structural costs estimated to reduce the return on equity by approximately 90 basis points.
- 2020 guidance range reflects regulatory timing lag estimated to reduce the return on equity by approximately 80 basis points.
- Expect an return on equity for Avista Utilities of approximately 7.7 percent in 2020.
- Expect the other businesses to contribute in the range of a loss of $0.02 to earnings of $0.02 per diluted share.