Technology

Why Is IdaCorp (IDA) Down 5.1% Since Last Earnings Report?

It has been about a month since the last earnings report for IdaCorp (IDA). Shares have lost about 5.1% 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 catalysts.

IDACORP Beats Q2 Earnings Estimates, Adds Customers

IDACORP, Inc. IDA reported second-quarter 2020 earnings of $1.19 per share, which surpassed the Zacks Consensus Estimate of $1.18 by 0.8%. The bottom line also improved 13.3% year over year.

The year-over-year improvement can be attributed to strong customer growth in its service territories and normal irrigation sales, which offset decline in revenues stemming from the impact of COVID-19 on commercial and industrial customer sales.

Total Revenues

Total revenues in the second quarter were $318.8 million, up 0.6% year over year.

Highlights of the Release

Customer growth in its service areas increased 2.6% in the 12 months ended Jun 30, 2020, which boosted operating income in the second quarter. Customer growth increased operating income by $3.4 million in the second quarter of 2020 from the year-ago quarter’s levels.

In the reported quarter, residential customers used more energy for heating and cooling due to weather variations and spending more time at home due to the stay at home directives, which increased usage per residential customer by 6% year over year.

Total operating expenses in the reported quarter declined 2.4% year over year to $239.3 million.

Financial Update

Cash and cash equivalents of IDACORP on Jun 30 were $460.4 million compared with $1,736.7 million as of Dec 31, 2019.
 
Its long-term debt on Jun 30 was $2,000.5 million, up from $2,202 million at the end of 2019.

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 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. Long-term capital expenditure from 2020 through 2024 is expected to be $1.6 billion.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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