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IdaCorp (IDA) Up 1.6% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for IdaCorp (IDA - Free Report) . Shares have added about 1.6% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.

IDACORP Q1 Earnings Drop Y/Y on Mild Winter Weather

IDACORP, Inc.  reported first-quarter 2020 earnings of 74 cents per share, which dropped 11.9% from the year-ago figure of 84 cents.

The year-over-year decline in earnings was due to reduction in transmission wheeling-related revenues from the prior-year quarter, and mild winter weather that lowered residential and commercial customer loads.

Highlights of the Release

Customer growth in its service areas increased 2.6% in the 12 months ended March 31, 2020, which helped the company offset the initial impacts of stay-at-home orders.

Despite an increase in the customer base in the first quarter, operating income decreased $6.1 million year over year due to lower sales volumes per customer. This was primarily due to moderate weather in Idaho Power's service areas. As a consequence, residential and commercial customers used less energy for heating. Some of its commercial customers were impacted by COVID-19-induced lockdowns.

Guidance

IDACORP reaffirmed full-year 2020 earnings guidance in the range of $4.45-$4.65 per share, assuming 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’s 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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