Avista confirms 2026 non-GAAP utility earnings guidance of $2.52-$2.72 per diluted share
Company expects 2026 base capital expenditures of $615 mln
Avista expects long-term non-GAAP utility earnings growth of 4-6% from 2025 guidance midpoint
Overview
U.S. energy utility's Q2 adjusted EPS was flat yr/yr but beat analyst expectations
GAAP net income and EPS rose, driven by investment gains at non-regulated businesses
Company reaffirmed 2026 non-GAAP utility earnings guidance
Result drivers
Revenue declines - Co said lower electric revenues were due to decreased wholesale revenues, removal of Colstrip cost recovery, and lower industrial sales after a large customer left
Lower resource costs - Decreased electric and natural gas resource costs helped offset revenue declines, mainly due to lower fuel costs and reduced purchased volumes
Higher operating expenses - Other operating expenses rose, mainly from increased employee salaries and benefits, partly offset by removal of Colstrip related costs
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy"
Wall Street's median 12-month price target for Avista Corp is $41.00, about 1.4% above its July 31 closing price of $40.45
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
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