A month has gone by since the last earnings report for IdaCorp (IDA). Shares have added about 0.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IdaCorp due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
IDACORP's Q1 Earnings Beat Estimates, Customers Rise
IDACORP, Inc. reported first-quarter 2019 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 71 cents by 18.3%. The reported earnings also improved 16.7% from the year-ago figure of 72 cents.
The improvement in earnings was due to colder-than-normal weather that boosted demand, new rates and customer growth in its service areas.
Highlights of the release
The company continues to enjoy increase in customer volumes, primarily due to low rates and high-quality service.
Customer growth led to a year-over-year increase in IDACORP’s operating income by $4.1 million, as the number of Idaho Power customers grew 2.4% during the 12 months ended Mar 31.
Net income in the quarter under review was $42.7 million, reflecting an increase from $36.1 million recorded in the year-ago period.
IDACORP reiterated its 2019 earnings guidance in the range of $4.30-$4.45, whose mid-point of $4.38 is lower than the current Zacks Consensus Estimate of $4.45.
The company expects 2019 operating and maintenance expenses associated with Idaho Power in the range of $350-$360 million.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
Currently, IdaCorp has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
IdaCorp has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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