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IDACORP (IDA) Beats Q3 Earnings Estimates, Ups 2020 View

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IDACORP, Inc. (IDA - Free Report) reported third-quarter 2020 earnings of $2.02 per share, which surpassed the Zacks Consensus Estimate of $1.99 by 1.5%. The bottom line also improved 13.5% year over year.

The year-over-year improvement can be attributed to strong customer growth in its service territories and higher transmission-related revenues resulting from wholesale market conditions, which offset the decline in revenues and tepid commercial customer sales stemming from COVID-19 impacts.

Total Revenues

Total revenues for the third quarter were $425.3 million, up 10.1% year over year.

IDACORP, Inc. Price, Consensus and EPS Surprise

IDACORP, Inc. Price, Consensus and EPS Surprise

IDACORP, Inc. price-consensus-eps-surprise-chart | IDACORP, Inc. Quote

Highlights of the Release

Customer growth in the company’s service areas increased 2.6% year over year in the 12 months ended Sep 30, 2020, which boosted operating income for the third quarter. Customer growth increased operating income by $3.9 million for third-quarter 2020 from the year-ago levels.

For the reported quarter, residential customers used more energy for heating and cooling due to weather variations and stay-at-home directives, which increased usage per residential customer by 3% year over year.

Total operating expenses for the reported quarter increased 10.4% year over year to $300.5 million.

Financial Update

Cash and cash equivalents of IDACORP on Sep 30 were $312.1 million compared with $217.3 million as of Dec 31, 2019.

Its long-term debt on Sep 30 was $2,000.4 million, up from $1,736.7 million at the end of 2019.

Cash from operating activities for the first nine months of 2020 was $284 million compared with $287 million in the corresponding year-ago period.

Guidance

IDACORP upwardly revised its full-year 2020 earnings guidance to the range of $4.55-$4.65 per share from $4.45-$4.65 expected earlier.

The company lowered 2020 operating and maintenance expenses associated with Idaho Power to the range of $345-$355 million from $350-$360 million of earlier projection. Idaho Power’s capital expenditure for 2020 is expected in the range of $300-$310 million.

Zacks Rank

Currently, IDACORP has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

Edison International (EIX - Free Report) reported third-quarter 2020 adjusted earnings of $1.67 per share, which surpassed the Zacks Consensus Estimate of $1.44 by 16%.

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