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Investing.com - Mizuho (NYSE:MFG) has reduced its price target on Avista (NYSE:AVA) to $39.00 from $42.00 while maintaining a Neutral rating following the company’s second-quarter earnings report. The utility company, currently trading at $36.67 and near its 52-week low, has a market capitalization of $2.95 billion. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
Avista reported second-quarter 2025 adjusted earnings per share of $0.17, significantly missing the consensus estimate of $0.32, with the shortfall primarily attributed to $0.15 in losses from non-utility operations.
Despite the earnings miss, Avista reaffirmed its full-year EPS guidance range of $2.52-$2.72, representing 4%-6% growth, though the company now expects results to land at the lower end of this range.
The main concern highlighted by Mizuho was Avista’s non-utility operations, which posted a $0.15 loss for the first half of 2025 due to valuation declines in its clean technology-focused venture funds.
Avista’s guidance also includes a $0.12 expected negative impact from the Energy Recovery (NASDAQ:ERII) Mechanism in 2025, with $0.08 already reflected in first-half results, while the core Avista Utilities business continues to perform well and is guided toward the upper end of its range.
In other recent news, Avista Corporation’s Q2 2025 earnings report showed a significant shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company reported an EPS of $0.17, which was below the anticipated $0.2964, reflecting a surprise of -42.65%. Revenue also fell short at $400 million, compared to the expected $411.41 million, resulting in a -2.77% surprise. In addition to the earnings report, Avista announced a quarterly dividend of $0.49 per share on its common stock. This dividend is scheduled for payment on September 15, 2025, to shareholders recorded by August 19, 2025. These developments provide investors with important insights into Avista’s recent financial performance and shareholder returns.
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