Avista (AVA) stock is facing a pre-market plunge of 5.91% on Thursday, as the company grapples with various challenges that have raised concerns among investors.

One significant factor contributing to the stock's decline is the potential financial strain arising from rising import tariffs and trade restrictions, as disclosed in Avista's risk disclosures. These trade tensions could impact the company's financial performance and profitability.

Additionally, Avista's recently released Q4 2024 and full-year earnings results have revealed mixed performance. While the company reported a 5% improvement in utility earnings from 2023, consolidated earnings for Q4 2024 declined to $0.84 per diluted share, down from $1.08 in Q4 2023. Furthermore, the Washington Commission did not support the modification of the energy recovery mechanism (ERM), impacting financial outcomes.

Investors are also concerned about Avista's declining return on capital employed (ROCE), which has fallen from 1.1% five years ago to 0.7%, despite a 37% increase in capital employed. This raises questions about the company's ability to effectively utilize its capital and generate sufficient returns.