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IDACORP (IDA) Up 2.3% Since Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for IDACORP, Inc. (IDA - Free Report) . Shares have added about 2.3% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to their next earnings release, or is the stock 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 catalysts.

IDACORP Misses Q2 Earnings Estimates, Declines Y/Y

IDACORP, Inc. recorded operating earnings of 99 cents per share in the second quarter of 2017, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Quarterly earnings were also down by 11.6% compared with the year-ago earnings of $1.12.

The year-over-year drop in earnings was due to soft irrigation sales in the second quarter. The higher than normal precipitation caused agricultural customers to use less energy to operate pumping equipment.

IDACORP's net income amounted $49.8 million for the second quarter of 2017 compared with $56.2 million in the year-ago quarter.

IDACORP increased 2017 earnings guidance in the range of $3.95 to $4.05 per diluted share from $3.90–$4.05. The company reaffirmed operating and maintenance expense for 2017 to be in the range of $345–$355 million.

Capital expenditure in 2017 has been reiterated in the range of $290–$300 million.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.

IDACORP, Inc. Price and Consensus

 

IDACORP, Inc. Price and Consensus | IDACORP, Inc. Quote

VGM Scores

At this time, IDACORP's stock has a poor Growth Score of F, however its Momentum is doing a lot better with a B.  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 F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising.  It comes with little surprise that the stock has a Zacks Rank #3 (Hold). We are expecting an above inline return from the IDA shares in the next few months.




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