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Why Is IdaCorp (IDA) Down 32.9% Since Last Earnings Report?

Zacks Equity Research

A month has gone by since the last earnings report for IdaCorp (IDA). Shares have lost about 32.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is IdaCorp due for a breakout? 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 Q4 Earnings Increase Y/Y on Customer Growth

IDACORP, Inc.  reported fourth-quarter 2019 earnings of 93 cents per share, which improved 78.8% from the year-ago figure of 52 cents.

The year-over-year improvement in earnings was attributable to strong economic activity in Idaho Power's service area and solid performance across IDACORP's other subsidiaries. Customer addition and cost management also had a positive impact on the company’s bottom line.

Highlights of the Release

In 2019, its customer base improved 2.5% year over year, which resulted in $18.8 million increase in operating income from 2018 levels.

Net income in the quarter under review was $47.1 million compared with $26.1 million recorded in the year-ago period.

The company continues to lower the usage of coal in its electricity generation units. The usage of coal dropped 59% in 2019 from 2005 levels.

Guidance

IDACORP initiated its full-year 2020 earnings guidance in the range of $4.45-$4.65 per share and this guidance assumes normal weather in its service territories. The mid-point of the guidance is $4.55, which is a penny less than the current Zacks Consensus Estimate.

The company expects 2020 operating and maintenance expenses associated with Idaho Power in the range of $350-$360 million. Idaho Power capital expenditure for 2020 is expected in the range of $300-$310 million.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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