Why Avista (AVA) Stock Is Up On Wednesday

NEW YORK (TheStreet) -- Shares of Avista Corp (AVA) are up 2.72% to $32.50 on Wednesday after the company announced net income was $48.5 million, or 81 cents per diluted share, compared to $42.3 million, or 71 cents per diluted share for the 2013 first quarter.

Revenue for the most recent quarter was $490.9 million versus $482.9 million from the year ago quarter.

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TheStreet Ratings team rates AVISTA CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate AVISTA CORP (AVA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 30.1%. Since the same quarter one year prior, revenues slightly increased by 9.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AVISTA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AVISTA CORP increased its bottom line by earning $1.86 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.86).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 99.7% when compared to the same quarter one year prior, rising from $15.86 million to $31.67 million.
  • You can view the full analysis from the report here: AVA Ratings Report

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