Avista Profit Falls - Update

(RTTNews) - Electric utility Avista Corp (AVA), Wednesday reported a decline in third-quarter profit, reflecting one-time gains from discontinued operations in the prior year.

Revenues increased on growth in its wholesale electric and gas businesses as well as contribution from Alaska Electric Light and Power Co, partly offset by a provision for earnings sharing with the company's Idaho customers.

"Avista Utilities' quarterly earnings were slightly below our expectations due to a provision for earnings sharing with our Idaho customers, which was partially offset by the continued focused management of our operating expenses," said Scott Morris, the company's chief executive officer.

Avista, based in Spokane, Washington, posted quarterly net earnings to stockholders of $10.5 million or $0.16 per share, compared with $11.4 million or $0.19 per share last year.

Results for the prior-year quarter included a gain of about $3 million from discontinued operations.

Analysts polled by Thomson Reuters estimated earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude one-time items.

Avista is engaged in the generation, transmission, and distribution of electricity, and distribution of natural gas.

The company's revenues for the third quarter increased to $301.6 million from $289.5 million a year ago.

For the full year 2014, Avista still expects earnings of $3.00 to $3.20 per share, while analysts currently expect $1.88 per share.

For 2015, the company expects earnings of $1.86 to $2.06 per share, while analysts currently project $1.97 per share.

"We continue to experience a strong 2014 in terms of achieving the milestones we've set for earnings growth and positioning our company. The recent completion of the sale of Ecova and the acquisition of Alaska Electric Light and Power provide the opportunity for continued earnings growth going forward, including exploring new market opportunities in Southeast Alaska," said CEO Scott Morris.

Avista shares are trading at $35.62, up $0.26 or 0.74%, on the NYSE.