Colder-than-normal temperatures coupled with better-than-usual hydropower generation will lead to higher-than-expected earnings for Spokane-based Avista Corp., D.A. Davidson & Co. analysts are projecting.

The Great Falls, Mont.-based regional stock brokerage raised its fourth-quarter 2010 earnings estimate for Avista to 53 cents a share, up from its previously estimated 47 cents a share. D.A. Davidson also raised its full-year 2010 earnings estimate for the power company by 6 cents, to $1.73 a share.

At $1.73 a share, Avista's full-year earnings would come in at the high end of Avista's own estimate, released last year, which stated its 2010 earnings likely would be between $1.55 and $1.75 per share.

"This would be a significant swing in outcomes, as management was calling for results to be at the bottom end of the range after the first quarter's mild weather and subnormal moisture," the D.A. Davidson report says.

Avista spokeswoman Jessie Wuerst says the company is scheduled to release its fourth-quarter and full-year 2010 earnings report early on Feb. 17.

Contributing to Avista's projected strong finish to 2010 is a rate increase that went into effect Dec. 1. Largely, however, the brokerage points to the La Nina weather effect late last year, which has brought cooler temperatures and required homeowners and businesses to use more energy heating their spaces.

Due in large part to the likely continuation of colder-than-normal temperatures and increased snowpack, which would lead to a healthy year for hydropower generation, D.A. Davidson also is increasing its 2011 earnings-per-share estimate for Avista, to $1.80 from $1.73. That's at the top of Avista's own earnings expectation for this year, which the company has placed in the $1.60-to-$1.80 per-share range.

For 2012, D.A. Davidson is projecting earnings per share for Avista of $1.92, which assumes rate increases in Washington and Idaho. Avista hasn't released its expectations for 2012 yet and likely won't do so until late this year.

On Jan. 10, Avista's stock price closed at $22.95 per share, not far from its 52-week high of $23.10 and well above its 52-week low of $18.46. At Avista's current price, D.A. Davidson is maintaining a neutral rating on the stock, meaning it's neither advising clients to buy nor sell Avista shares.