Avista (NYSE:AVA) Releases Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• Avista beat quarterly earnings expectations: EPS was $0.43 versus the $0.23 consensus, although revenue of $413 million fell short of the $426.9 million estimate. Full-year 2026 utility earnings guidance was reaffirmed at $2.52–$2.72 per share.
• Spokane wildfires pose significant operational and financial risks, leaving thousands of electric and natural-gas customers without service and causing extensive infrastructure damage. Avista said the extent of repair costs, insurance coverage and potential cost recovery remains uncertain.
• The company continues to offer a roughly 5% dividend yield, but investors face volatility from nonregulated investments, potential additional stock and debt issuance, and regulatory and wildfire-related exposures; analysts maintain a consensus “Hold” rating.

Avista (NYSE:AVA - Get Free Report) announced its earnings results on Monday. The utilities provider reported $0.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.20, RTT News reports. The business had revenue of $413.00 million for the quarter, compared to analyst estimates of $426.93 million. Avista had a return on equity of 7.65% and a net margin of 10.75%.The company's revenue for the quarter was up .5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.17 earnings per share. Avista updated its FY 2026 guidance to 2.520-2.720 EPS.

Here are the key takeaways from Avista's conference call:

• Spokane wildfires caused significant infrastructure damage, with approximately 7,300 electric and 5,300 natural-gas customers still without service. The full extent and duration of distribution-system repairs remain uncertain, creating potential cost and operational risks.
• Avista said it is too early to determine wildfire cost recovery or insurance treatment; while a Washington securitization mechanism exists, management does not currently expect the event to be financially large enough to require it.
• Management said its wildfire-mitigation measures—including vegetation management, monitoring, operational changes, and public-safety power shutoffs—appear to have worked as intended, and crews repaired a key transmission line that reduced the risk of additional outages.
• Avista continues to pause negotiations on a potential 500-megawatt data-center project while regulators and stakeholders develop stronger customer protections. The company said it will proceed only if the project provides a net benefit, preserves reliability, and does not shift costs to existing customers.
• Management expects volatility in nonregulated investment results; a gain anticipated next quarter from an IPO-related investment would largely reverse at current share prices, although future fund exits could provide cash-flow benefits.

Avista Stock Performance

NYSE:AVA traded down $0.29 during trading hours on Tuesday, reaching $39.26. 140,229 shares of the stock were exchanged, compared to its average volume of 670,367. The company has a quick ratio of 0.60, a current ratio of 0.90 and a debt-to-equity ratio of 1.01. The firm has a 50 day simple moving average of $41.32 and a 200-day simple moving average of $41.00. Avista has a 52 week low of $35.50 and a 52 week high of $43.50. The stock has a market capitalization of $3.24 billion, a P/E ratio of 15.63, a P/E/G ratio of 3.79 and a beta of 0.25.

Avista Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Tuesday, May 19th were paid a dividend of $0.4925 per share. The ex-dividend date was Tuesday, May 19th. This represents a $1.97 annualized dividend and a yield of 5.0%. Avista's dividend payout ratio is presently 78.49%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AVA. Weiss Ratings raised Avista from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, July 23rd. Wells Fargo & Company set a $39.00 price target on shares of Avista in a research report on Tuesday, April 21st. Mizuho lifted their price target on shares of Avista from $41.00 to $42.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Zacks Research raised shares of Avista from a "strong sell" rating to a "hold" rating in a report on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Avista from a "sell" rating to a "hold" rating in a research note on Saturday, April 18th. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $39.25.

Trending Headlines about Avista

Here are the key news stories impacting Avista this week:

• Positive Sentiment: Avista reported second-quarter GAAP earnings of $0.43 per diluted share, well above the $0.23 analyst consensus and up from $0.17 a year earlier. Net income increased to $35 million from $14 million. Avista Corp. Reports Q2 2026 Financial Results, Confirms 2026 Utility Earnings Guidance
• Positive Sentiment: Management reaffirmed 2026 non-GAAP utility earnings guidance of $2.52-$2.72 per share, signaling continued confidence in operating performance and cost controls. The guidance midpoint is modestly above the current consensus estimate of $2.60. Avista Corp. Reports Second Quarter 2026 Results, Reaffirms Full-Year Utility Earnings Guidance
• Positive Sentiment: First-half GAAP net income rose to $127 million from $93 million, helped by improved investment performance and general rate-case benefits.
• Neutral Sentiment: Revenue was $413 million, slightly below the $426.9 million consensus, although it increased from the prior year. Avista Utilities’ second-quarter non-GAAP earnings per share were flat at $0.29, indicating that much of the GAAP improvement came from non-regulated investment gains rather than core utility growth.
• Negative Sentiment: Wildfires in the Spokane, Washington, area caused extensive damage to the power grid and service disruptions, raising concerns about repair costs, operational interruptions, liability and potential reputational damage. Avista Corporation Reports Extensive Wildfire Damage to Spokane Power Grid
• Negative Sentiment: Year-to-date electric and natural-gas revenues declined due partly to the departure of a large industrial customer, lower wholesale revenue and regulatory-related adjustments.
• Negative Sentiment: Avista disclosed continuing exposure to regulatory, wildfire, financing and investment-volatility risks. It also expects to issue additional stock and debt, while evaluating up to $100 million of extra short-term liquidity needs. Recent insider activity showed three sales and no purchases.

Insider Buying and Selling at Avista

In related news, SVP Wayne O. Manuel sold 1,593 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $40.98, for a total transaction of $65,281.14. Following the sale, the senior vice president directly owned 10,521 shares of the company's stock, valued at approximately $431,150.58. This represents a 13.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.78% of the company's stock.

Hedge Funds Weigh In On Avista

A number of hedge funds have recently added to or reduced their stakes in AVA. Goldman Sachs Group Inc. boosted its holdings in shares of Avista by 105.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,137,236 shares of the utilities provider's stock valued at $43,829,000 after acquiring an additional 582,742 shares during the period. Qube Research & Technologies Ltd increased its stake in shares of Avista by 1,723.9% in the third quarter. Qube Research & Technologies Ltd now owns 442,427 shares of the utilities provider's stock valued at $16,728,000 after purchasing an additional 418,170 shares during the period. State Street Corp raised its holdings in shares of Avista by 8.3% during the second quarter. State Street Corp now owns 5,191,896 shares of the utilities provider's stock valued at $197,032,000 after buying an additional 398,446 shares during the last quarter. Norges Bank acquired a new position in shares of Avista during the fourth quarter worth approximately $13,533,000. Finally, Sei Investments Co. grew its holdings in Avista by 216.5% in the 3rd quarter. Sei Investments Co. now owns 477,238 shares of the utilities provider's stock worth $18,044,000 after buying an additional 326,469 shares in the last quarter. Institutional investors and hedge funds own 85.24% of the company's stock.

Avista Company Profile

Avista Corporation operates as an integrated energy company providing electric and natural gas delivery services to residential, commercial and industrial customers in the Pacific Northwest. Through its regulated utility operations, the company maintains and upgrades an extensive transmission and distribution network, delivering reliable energy to approximately 400,000 electric customers and 324,000 natural gas customers across Washington, Oregon and Idaho. In addition to its core utility business, Avista invests in owned generation assets, including hydroelectric, natural gas–fired, coal and wind facilities, to support system reliability and long-term supply planning.

Founded in 1889 as the Spokane and Inland Empire Water Power Company, the business adopted the Avista name in 1999 to reflect its growing energy portfolio and strategic focus on innovation.

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