Avista Corp. (NYSE: AVA) reported Q3 EPS of $0.07, $0.07 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $263.6 million versus the consensus estimate of $301.1 million.

GUIDANCE:

Avista Corp. sees FY2020 EPS of $1.75-$1.95, versus the consensus of $1.86.

• Avista Corp. is confirming its 2020 earnings guidance to a consolidated range of $1.75 to $1.95 per diluted share. We expect to be near the midpoint, including the benefit of the ERM, which is offsetting lower utility margin and higher operating costs.
• We are expecting that COVID-19 impacts at Avista Utilities related to increased operating expenses, including bad debt, and increased interest expense, will be mostly offset by expected tax benefits from the Coronavirus Aid, Relief, and Economic Security Act, regulatory deferrals and other efforts to identify cost reduction opportunities. We have filed for deferred accounting treatment of net COVID-19 expenses in each of our jurisdictions. We have deferred costs in Idaho and anticipate deferring costs in Washington and Oregon in the fourth quarter.
• We continue to expect to experience regulatory lag until 2023. We filed a general rate case in Oregon in March 2020, in Washington in October 2020, and anticipate filing in Idaho in the first quarter of 2021.
• We expect Avista Utilities to contribute in the range of $1.77 to $1.89 per diluted share for 2020, including the ERM. Our current expectation for the ERM is a benefit position within the 90 percent customer/10 percent Company sharing band, which is expected to contribute $0.06 per diluted share. The benefit from the ERM is offsetting lower utility margin and higher operating costs. Our outlook for Avista Utilities assumes, among other variables, normal precipitation, temperatures and hydroelectric generation for the remainder of the year.
• For 2020, we expect AEL&P to contribute in the range of $0.07 to $0.11 per diluted share. Our outlook for AEL&P assumes, among other variables, normal precipitation and hydroelectric generation for the remainder of the year.
• We expect the other businesses to have a loss of $0.09 to $0.05 per diluted share.
• Our guidance generally includes only normal operating conditions and does not include unusual items such as settlement transactions or acquisitions/dispositions 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.

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