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Why Is IDACORP (IDA) Down 3.2% Since Its Last Earnings Report?

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It has been about a month since the last earnings report for IDACORP, Inc. (IDA - Free Report) . Shares have lost about 3.2% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is IDA due for a breakout? 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 Q1 Earnings Beat on Strong Customer Growth

IDACORP reported first-quarter 2018 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 71 cents by 1.4%. Quarterly earnings increased 9.1% from 66 cents in the year-ago quarter.

The improvement was driven by strong economic activity and fixed cost adjustment mechanism revenues in Idaho that helped to offset lower residential sales from a milder winter.

Highlights of the Release

In the first quarter, customer growth increased operating income by $2.4 million year over year, as the number of Idaho Power customers grew 2.1% in the last 12 months.

In the quarter, Idaho Power also benefited from a $2.7 million increase in transmission services and other revenues compared with the prior-year quarter.

Total operating expenses in the first quarter were $258.4 million, up 4.4% year over year.

Operating income was down 5.6% from the year-ago quarter to $50.6 million.

Financial Update

Cash and cash equivalents as of Mar 31, 2018 was $307.3 million compared with $76.7 million as of Dec 31, 2017.

Total long-term debt as of Mar 31, 2018 was $1.83 billion compared with $1.75 billion at the end of 2017.

Cash from operating activities in the first quarter of 2018 was $91.7 million, down 19.3% from $113.7 million in the first quarter of 2017.

Guidance

IDACORP reaffirmed its earnings guidance for 2018 in the range of $4.10-$4.25 per share.

Operating and Maintenance expenses for 2018 are expected within $345-$355 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.

IDACORP, Inc. Price and Consensus

 

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

VGM Scores

At this time, IDA has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. The stock was also 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.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, IDA has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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