Avista Corp. (AVA) Tops Q1 EPS by 15c, Offers FY21 and FY22 Guidance

Avista Corp. (NYSE: AVA) reported Q1 EPS of $0.98, $0.15 better than the analyst estimate of $0.83. Revenue for the quarter came in at $399.9 million versus the consensus estimate of $410.13 million.

GUIDANCE:

Avista Corp. sees FY2021 EPS of $1.96-$2.16, versus the consensus of $2.10.

Avista Corp. sees FY2022 EPS of $2.18-$2.38, versus the consensus of $2.30.

• Avista Corp. is confirming 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. Our guidance assumes, among other things listed below, timely and appropriate rate relief in our jurisdictions.
• Our 2021 earnings guidance range reflects unrecovered structural costs estimated to reduce the return on equity by approximately 70 basis points, as well as regulatory timing lag estimated to reduce the return on equity by approximately 100 basis points. This results in an expected return on equity for Avista Utilities of approximately 7.7 percent in 2021.
• We expect Avista Utilities to contribute in the range of $1.93 to $2.07 per diluted share for 2021. The mid-point of our Avista Utilities’ guidance range does not include any expense or benefit under the ERM. Our current expectation for the ERM is a benefit position within the 75 percent customer/25 percent Company sharing band, which is expected to contribute $0.06 per diluted share.
• For 2021, we expect AEL&P to contribute in the range of $0.08 to $0.11 per diluted share.
• We expect the other businesses to have a loss of $0.05 to $0.02 per diluted share. We expect to experience increased costs associated with exploring strategic business opportunities.
• Our outlook for Avista Utilities and AEL&P assumes, among other variables, normal precipitation, temperatures, other operating conditions, and slightly below normal hydroelectric generation. Our guidance does not include the effect of unusual or non-recurring items until the effects are known and certain. We cannot predict the duration and severity of the COVID-19 global pandemic. The longer and more severe the economic restrictions and business disruption, the greater the impact on our operations, results of operations, financial condition and cash flows.

For earnings history and earnings-related data on Avista Corp. (AVA) click here.

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