Avista Q3 profit rises on investment gains, retail price hike

Overview

• U.S. energy utility's Q3 GAAP net income and EPS rose yr/yr

• Non-GAAP utility earnings and EPS for Q3 increased slightly from prior year

• Q3 earnings rose mainly due to investment gains at non-regulated businesses

Outlook

• Avista confirms 2026 non-GAAP utility EPS guidance of $2.52-$2.72

• Company expects 2026 non-GAAP utility EPS near midpoint of $2.52-$2.72 range

• Avista expects 2026 capital expenditures of $615 mln

Result Drivers

• INVESTMENT GAINS - Co said higher net income was mainly due to investment gains at non-regulated businesses

• RETAIL RATE INCREASES - Q3 electric revenues rose due to higher retail rates

• HIGHER POWER COSTS - Q3 electric resource costs rose due to higher purchased power volume and prices, and increased authorized power supply costs

Company press release:

Key Details

Analyst Coverage

• 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 Corporation is $39.00, about 2.3% above its November 3 closing price of $38.11

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Nov 2 - Entergy Q3 profit beats estimates on retail sales; raises dividend

• Nov 2 - Utility holding company PSEG Q3 revenue falls, maintains 2026 guidance

• Nov 3 - Essential Utilities Q3 revenue rises on regulatory recoveries, higher gas costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)