Avista Corp (AVA) Reports Q3 2023 Earnings: Net Income Rises to $14.7 Million
Avista Corp (NYSE:AVA) reported Q3 2023 net income of $14.7 million, a significant improvement from a net loss of $5.8 million in Q3 2022.
Net income for the nine months ended Sept. 30, 2023, was $87.0 million, up from $77.2 million for the same period in 2022.
Avista Utilities and AEL&P performed better than expected, while other businesses experienced losses.
Avista Corp (NYSE:AVA) narrows its 2023 consolidated earnings guidance range to $2.27 to $2.37 per diluted share.
On November 1, 2023, Avista Corp (NYSE:AVA) reported its financial results for the third quarter of 2023. The company reported a net income of $14.7 million, or earnings of $0.19 per diluted share, for the third quarter of 2023, compared to a net loss of $5.8 million, or $0.08 per diluted share, for the third quarter of 2022. For the nine months ended Sept. 30, 2023, net income was $87.0 million, or $1.14 per diluted share, compared to $77.2 million, or $1.06 per diluted share for the same period in 2022.
Performance Overview
Avista Corp (NYSE:AVA)'s third-quarter results exceeded expectations, reflecting the company's strategic execution, constructive regulatory outcomes, and diligent cost management. The primary driver of results at other businesses was the recurring valuation of investments, leading to volatility in these results. The company's CEO, Dennis Vermillion, stated, "Avista Utilities' results for the third quarter are ahead of our expectations. Our results reflect the steps we've taken this year to execute our strategy, including constructive regulatory outcomes and our ongoing diligence in managing costs."
Financial Highlights
Avista Corp (NYSE:AVA) reported a total net income of $14.7 million for Q3 2023, compared to a net loss of $5.8 million for Q3 2022. The net income for Avista Utilities was $13.5 million, while AEL&P and other businesses reported net incomes of $288,000 and $930,000 respectively. The earnings per diluted share for the total net income was $0.19, compared to a loss per diluted share of $0.08 in Q3 2022.
Analysis of 2023 Consolidated Earnings
The change in net income and diluted earnings per share for the third quarter and year-to-date 2023 as compared to the same periods in 2022 was primarily driven by increased electric utility margin, natural gas utility margin, and other operating expenses. However, these were partially offset by increased depreciation and amortization, interest expense, and other factors.
Capital Expenditures and Other Investments
Avista Utilities capital expenditures were $347 million for the nine months ended Sept. 30, 2023, and the company plans to spend $475 million for the year. The company has increased its expectations for Avista Utilities' capital expenditures to $500 million for 2024, $525 million for 2025, and $550 million for 2026.
2023 Earnings Guidance and Outlook
Avista Corp (NYSE:AVA) is narrowing its 2023 consolidated earnings guidance range to $2.27 to $2.37 per diluted share, reflecting better-than-expected performance at Avista Utilities and AEL&P and losses at other businesses.
Explore the complete 8-K earnings release (here) from Avista Corp for further details.
This article first appeared on GuruFocus.
