Avista (NYSE:AVA) Posts Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Avista (NYSE:AVA) posted its quarterly earnings results on Wednesday. The utilities provider reported $0.88 EPS for the quarter, missing analysts’ consensus estimates of $1.01 by ($0.13), Zacks reports. Avista had a net margin of 9.62% and a return on equity of 7.18%. The firm had revenue of ($87.00) million for the quarter, compared to the consensus estimate of $541.10 million. During the same quarter in the prior year, the company earned $0.84 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:

• Avista is emphasizing results from its core utility business and reported 2025 non‑GAAP utility EPS of $2.55 (vs. $2.38 in 2024) while consolidated EPS was $2.38, signaling management’s intent to reduce volatility from non‑regulated earnings.
• From the 2025 RFP Avista selected a 14 MW turbine upgrade, a 100 MW build‑transfer battery, a 200 MW wind PPA and ~40 MW of demand response, which the company says will add flexible, resilient capacity without increasing emissions.
• Avista received a significant deposit from a data‑center developer for an initial 125 MW load (potentially ramping to 500 MW by 2030) and still has roughly 1,700 MW in its large‑load queue, a pipeline that could materially aid affordability and growth.
• A December Washington Commission order required adjustments to Colstrip‑related investment recovery, which reduced 2025 EPS by about $0.07 and kept utility earnings from exceeding the guidance midpoint.
• Management issued 2026 non‑GAAP utility guidance of $2.52–$2.72, plans $585M capex in 2026 and $3.4B from 2026–2030 (5% base CAGR) with potential incremental $350M for a large customer; it expects ~$230M long‑term debt and up to $90M equity issuance in 2026, and raised the dividend to $1.97 targeting a 60%–70% payout range.

Avista Stock Down 1.4%

Shares of AVA stock traded down $0.55 during mid-day trading on Thursday, reaching $40.06. 587,863 shares of the company’s stock traded hands, compared to its average volume of 644,727. The company’s 50-day moving average price is $40.33 and its 200-day moving average price is $38.96. The company has a market cap of $3.26 billion, a P/E ratio of 17.03, a P/E/G ratio of 2.19 and a beta of 0.28. The company has a quick ratio of 0.60, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. Avista has a 12 month low of $35.50 and a 12 month high of $43.50.

Avista Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Wednesday, February 25th will be given a dividend of $0.4925 per share. This is an increase from Avista’s previous quarterly dividend of $0.49. This represents a $1.97 annualized dividend and a yield of 4.9%. The ex-dividend date of this dividend is Wednesday, February 25th. Avista’s payout ratio is 83.40%.

Avista News Summary

Here are the key news stories impacting Avista this week:

• Positive Sentiment: Core utility performance improved — 2025 GAAP net income rose to $193M (GAAP EPS $2.38) and non‑GAAP utility earnings increased to $207M ($2.55/share), driven by rate case outcomes, customer/load growth and cost discipline. This supports the long‑term regulated earnings story. Avista Corp. Reports 2025 Financial Results
• Neutral Sentiment: Company hosted an earnings call and posted slides/transcript — useful for detail on regulatory decisions, ERM impacts and capex plans but not new by itself. Earnings Call Presentation
• Negative Sentiment: Q4 EPS missed expectations — reported $0.88 vs. consensus $1.01 for the quarter; lower-than-expected quarterly results weighed on near-term sentiment. Avista Earnings Snapshot
• Negative Sentiment: 2026 utility earnings guidance initiated at $2.52–$2.72, below the Street consensus (~$2.76) — company says a large industrial customer will procure power independently sooner than expected, reducing guidance by ~$0.12/sh. That shortfall and the lower guide are primary drivers of the stock decline. 2026 Utility Earnings Guidance
• Negative Sentiment: Higher capital plan and near‑term cash needs — Avista plans elevated capex ($585M in 2026 and rising thereafter) and expects additional debt/equity issuance, which can weigh on credit metrics and investor appetite for the stock in the near term. Capex & Liquidity Details
• Negative Sentiment: Non‑regulated investment losses increased (clean‑tech exposure) and some insider selling / mixed institutional flows were noted — adds to near‑term volatility and uncertainty for GAAP results. Quiver Quant Summary

Insider Activity

In related news, SVP Wayne O. Manuel sold 1,785 shares of Avista stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $38.74, for a total transaction of $69,150.90. Following the completion of the transaction, the senior vice president directly owned 9,883 shares of the company’s stock, valued at $382,867.42. This trade represents a 15.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.96% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Avista

Institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. lifted its holdings in shares of Avista by 90.7% during the fourth quarter. UMB Bank n.a. now owns 637 shares of the utilities provider’s stock valued at $25,000 after purchasing an additional 303 shares during the last quarter. Headlands Technologies LLC bought a new position in Avista during the 2nd quarter valued at approximately $37,000. Aquatic Capital Management LLC purchased a new position in Avista during the third quarter valued at $43,000. CIBC Private Wealth Group LLC boosted its holdings in Avista by 619.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,439 shares of the utilities provider’s stock worth $55,000 after acquiring an additional 1,239 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new stake in Avista in the fourth quarter worth $57,000. Institutional investors own 85.24% of the company’s stock.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Jefferies Financial Group cut their target price on Avista from $41.00 to $39.00 and set a “hold” rating on the stock in a research note on Wednesday, January 28th. Wells Fargo & Company cut their price objective on Avista from $38.00 to $37.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 20th. Mizuho set a $42.00 target price on Avista in a report on Thursday, November 6th. KeyCorp reaffirmed a “sector weight” rating on shares of Avista in a research note on Tuesday, January 27th. Finally, Weiss Ratings upgraded shares of Avista from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $39.33.

About Avista

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.