IDACORP, Inc.

IDACORP, Inc. (IDA - Snapshot Report) beat Wall Street estimates by 28.09% in the third quarter as a merciful mother nature helped the bottom line in the company's key electric markets of Idaho and Oregon. IDA is trading at 12.5x forward earnings.

Company Description

IDACORP, Inc. is a holding company with three companies: Idaho Power, IDACORP Financial Services ("IFS") and Ida-West Energy Company. Idaho Power generates electricity in a 24,000 square mile area in southern Idaho and eastern Oregon to a population of about 982,000. The company operates 17 hydroelectric power plants, 2 gas-fired plants and shares ownership in 3 coal-fired generating plants.

Ida-West Energy, an affiliate of Idaho Power, operates and has an ownership interest in 9 Qualifying Facilities in Idaho and California.

IFS was formed in 1986 as an investing vehicle for the unregulated capital of Idaho Power. It currently holds a $200 million portfolio of tax credit real estate properties, including historic properties, throughout the United States.

Third Quarter Earnings Jump 75.4%

On Nov 6, IDACORP announced third quarter earnings that beat Wall Street estimates by 28.09%, or 25 cents per share. Net income climbed 79% to $51.7 million from $28.9 million in the third quarter of 2007. Earnings per share rose 75.4% to $1.14 from 65 cents. Analysts expected 89 cents.

Idaho Power, IDACORP's largest subsidiary, saw net income grow 97% to $47.4 million from $24.1 million in the year ago period. The company attributed part of the growth to assistance from mother nature, which gave Idaho and Oregon near-normal temperatures and better water conditions compared to the drought and extreme temperatures of prior years.

Consensus Estimates Rise for 2008 and 2009

Covering analysts are optimistic about full-year 2008 and 2009 earnings. 2008 estimates are up 17 cents to $2.28 in the last 3 months.

2009 consensus estimates also climbed 6 cents to $2.35 in the last 90 days.

Solid Fundamentals

IDACORP, Inc. is a Zacks #1 Rank (strong buy) stock. It has surprised on estimates 2 out of the last 4 quarters by an average of 4.22%.

IDA has a forward P/E of 12.54. Its price-to-book is 1.05. The company also pays a dividend, with a current yield of 4.07%.

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