) announced third-quarter 2013 earnings of 19 cents per share,
surpassing the Zacks Consensus Estimate of 15 cents by 26.7%. On
a year-over-year basis, earnings jumped 90%, primarily on the
heels of lower total operating expenses.
The company generated operating revenues of $335.9 million,
missing the Zacks Consensus Estimate by 3.5%. Quarterly revenues
edged down 1.4% from $340.6 million in the prior-year quarter.
In the quarter under review, total operating expenses were $300.6
million, down 4.3% year over year due to a decline in utility
A decrease in revenues was more than offset by a decline in total
operating expenses. Avista's operating margin jumped to 10.5%
from the year-ago level of 7.8%.
Segmental net income increased 23.3% year over year to $9.4
million, on the back of warmer-than-normal weather conditions,
general electricity rate-hike approvals in Washington and general
rate increase for natural gas in Washington and Idaho.
The segment's net income spiked 375% year over year to $3
million, primarily due to higher revenues from the expense and
data management services and addition of new services.
The segment reported a loss of $1.1 million, narrower than the
year-ago loss of $2.5 million primarily due to an earnings
contribution from METALfx.
As of Sep 30, 2013, Avista's cash and cash equivalents were $92
million versus $75.5 million as of Dec 31, 2012.
Long-term debt, as of Sep 30, 2013, was $1,272.3 million compared
with $1,178.4 million at the end of 2012.
During the first nine months of 2013, the company invested $220.7
million as utility capital expenditures.
Share Issue Update
AMER ELEC PWR (AEP): Free Stock Analysis
AVISTA CORP (AVA): Free Stock Analysis Report
NRG YIELD INC-A (NYLD): Free Stock Analysis
UNS ENERGY CORP (UNS): Free Stock Analysis
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As of Sep 30, 2013, Avista had 1.8 million shares of common stock
to be issued under sales agency agreements. In the first nine
months of 2013, the company issued $4 million (net of issuance
costs) of common stock under the dividend reinvestment and direct
stock purchase plan, and employee plans.
Avista reiterated its full-year 2013 consolidated earnings
guidance, which is in the range of $1.70 - $1.90 per share.
The company also provided full-year 2014 consolidated earnings
guidance of $1.77 to $1.97 per share.
Avista intends to invest $280 million in 2013 under the capital
spending program. The company increased its capital spending
guidance for full-year 2014 and 2015 to $335 million and $360
million, respectively, from the earlier projection of $260
million. The company increased its investment level primarily to
meet higher utility demand and upgrade existing generation,
transmission and energy distribution systems.
American Electric Power Company Inc.
) reported third-quarter operating earnings of $1.10 per share,
beating the Zacks Consensus Estimate of $1.08 by 1.9%.
Avista currently has a Zacks Rank #3 (Hold). However, other
stocks from the industry that are presently performing well
NRG Yield, Inc.
) with a Zacks Rank #1 (Strong Buy) and
UNS Energy Corporation
) with a Zacks Rank #2 (Buy).