Avista Predicts 1Q Earnings Downturn
Avista Corp. of Spokane, WA, its first-quarter earnings per
share could fall as much as 15 cents per share below securities
analysts' current consensus first quarter estimate of 49 cents per
share. However, CEO T.M. Matthews said the company is still
comfortable with analyst expectations of earnings for the year of
between $1.55-$1.65 per share
Matthews said Avista Energy, the company's national energy
trading and marketing affiliate, suffered reductions in the value
of future positions. Weak energy markets nationwide and lower
volatility within those markets resulted in the lack of
opportunities to arbitrage trading positions in the first quarter.
Matthews noted Avista Energy results reflect mark-to-market
accounting, which requires the company to value its entire
portfolio based on current prices at month end. Because Avista
Energy marks its portfolio to fair market value on a daily basis,
earnings variability results.
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