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Dec 31, 2023

Avista Q4 2023 Earnings Report

Announced 2023 results and initiated 2024 earnings guidance.

Key Takeaways

Avista Corp. reported a net income of $84.135 million for the fourth quarter of 2023, with earnings per diluted share of $1.08. The company is initiating its 2024 earnings guidance with a consolidated range of $2.36 to $2.56 per diluted share.

2023 consolidated earnings per diluted share of $2.24.

Significant improvement in Avista Utilities earnings reflects the benefits of cost recovery and cost management.

2024 consolidated earnings guidance initiated at $2.36 to $2.56 per diluted share.

Filed a multi-year rate plan in Washington in January.

Total Revenue
$517M
Previous year: $497M
+4.1%
EPS
$1.08
Previous year: $1.05
+2.9%
Gross Profit
$127M
Previous year: $266M
-52.4%
Cash and Equivalents
$35M
Previous year: $13.4M
+160.7%
Free Cash Flow
-$85.6M
Previous year: -$207M
-58.6%
Total Assets
$8.03B
Previous year: $7.42B
+8.2%

Avista

Avista

Forward Guidance

Avista Corp. is initiating its 2024 earnings guidance with a consolidated range of $2.36 to $2.56 per diluted share.

Positive Outlook

  • Expect Avista Utilities to contribute within a range of $2.23 to $2.39 per diluted share in 2024.
  • Expect the ERM to be neutral to earnings with a positive impact in the latter part of the year offsetting the negative impact in the first quarter.
  • Expect the distribution of earnings between quarters in 2024 to more closely align with results prior to 2023.
  • Expect AEL&P to contribute in the range of $0.09 to $0.11 per diluted share in 2024.
  • Expect other businesses to contribute in the range of $0.04 to $0.06 per diluted share in 2024.

Challenges Ahead

  • Expect the impact of the ERM on earnings to be negative during the first quarter of 2024 in the 50 percent customer/50 percent company sharing band.
  • Various factors could cause actual results to differ materially from our expectations, including our earnings guidance.
  • State and federal regulatory decisions or related judicial decisions that affect our ability to recover costs and earn a reasonable return.
  • Weather conditions, which affect both energy demand and electric generating capability.
  • Wildfires ignited, or allegedly ignited, by our equipment or facilities could cause significant loss of life and property or result in liability for resulting fire suppression costs and/or damages, thereby causing serious operational and financial harm.