Investors looking for stocks in the Utility - Electric Power sector might want to consider either OGE Energy (OGE) or IdaCorp (IDA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earni ...

IdaCorp (IDA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings picture ...

Company Overview - IDACORP is a regulated electric utility holding company primarily operating through Idaho Power, which serves approximately 650,000 customers in southern Idaho and eastern Oregon [1] Business Model - The company heavily relies on hydropower for its electricity generation [1] Market Focus - The analysis primarily targets small- to mid-cap companies, although large-cap companies are occasionally reviewed to provide a broader market perspective [1]

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Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share increased to $2.26 in Q3 2025 from $2.12 in Q3 2024, with year-to-date EPS rising to $5.13 from $4.82 [3][4] - Net income for Q3 2025 rose by $10.8 million compared to Q3 2024, primarily driven by higher retail revenues and customer growth [14][18] - Operating cash flows through September 2025 were $464 million, up $6 million from the previous year [19] Business Line Data and Key Metrics Changes - Customer base grew by 2.3% year-over-year, with residential customers increasing by 2.5% [5][6] - Retail revenues per megawatt hour increased operating income by $17.6 million, while customer growth added $7.8 million to operating income [14][15] - O&M expenses rose by $4.2 million due to inflationary pressures and wildfire mitigation efforts [16] Market Data and Key Metrics Changes - The company reported a modest decrease in irrigation usage per customer, attributed to higher precipitation and lower temperatures compared to the previous year [15][44] - Despite lower cooling degree days, sales growth remained strong, indicating robust customer growth and operational performance [41][42] Company Strategy and Development Direction - IDACORP is focusing on maintaining customer affordability while supporting growth, with residential rates increasing less than the national average since 2014 [7][8] - The company is advancing key projects, including the Boardman to Hemingway transmission line and the Bennett Mountain gas-fired plant expansion, to meet future load growth [9][10] - A recent settlement in the Idaho general rate case aims to increase annual revenues by $110 million, supporting the company's financial health [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational performance, raising full-year EPS guidance to a range of $5.80 to $5.90 [4][22] - The company anticipates continued customer growth, particularly in manufacturing and technology sectors, driven by significant investments in the region [5][6] - Management acknowledged potential economic softening but noted no significant trends of concern regarding customer growth [40] Other Important Information - The company filed its 2026 Idaho Wildfire Mitigation Plan, outlining methods to mitigate wildfire risk [11][12] - The Idaho Commission approved a request for additional pre-collection of Hells Canyon AFUDC, increasing cash collection by about $30 million annually [19] Q&A Session Summary Question: What was in the capital plan for Jackalope, and what are the potential solutions? - Management noted that the Jackalope Wind Project was a significant capital piece, with 600 megawatts of capacity, and they are exploring gas options as replacements [25][26] Question: Can you provide insights on customer growth trends? - Management indicated that while customer growth is steady, there may be slight softening due to economic factors, but no major concerns were noted [40][42] Question: How do you plan to address the loss of the Jackalope Wind Project? - Management stated that they will update the capital forecast in February and are considering incremental resources to replace the lost capacity [77][78] Question: What are the priorities for the next general rate case? - Management is assessing the timing and need for the next rate case, considering various elements including potential tracking mechanisms [68][69] Question: How do you see the ROE outlook with new large load customers? - Management expects that revenues from large load customers will eventually increase ROE above the minimum level of 9.12% [70][71]

Earnings Performance - IDACORP's net income for the three months ended September 30, 2025, was $124.437 million, compared to $113.605 million for the same period in 2024[13] - Diluted earnings per share increased to $2.26 for the three months ended September 30, 2025, from $2.12 in 2024[13] - For the nine months ended September 30, 2025, net income was $279.865 million, up from $251.298 million in 2024[13] - Diluted earnings per share for the nine months ended September 30, 2025, were $5.13, compared to $4.82 in 2024[13] Load and Customer Growth - The 2025 Integrated Resource Plan (IRP) forecasts an 8.3% annual growth rate for retail sales (billed MWh) over the next 5 years[14] - The 2025 IRP forecasts a 5.1% annual growth rate for annual peak demand over the next 5 years[14] - Idaho Power customer growth was 2.3% year-over-year as of September 30, 2025[17] Rate Case Settlement - A settlement has been reached for Idaho General Rate Case, requesting a $110 million increase in total annual Idaho-jurisdictional revenue, equivalent to a 7.48% rise, pending IPUC approval[29] - The settlement provides for a 9.6% Idaho-jurisdiction return on equity (ROE) and a 7.41% authorized rate of return applied to an Idaho-jurisdiction retail rate base of approximately $4.9 billion[29] Financial Outlook - IDACORP's earnings per share guidance for 2025 is $5.80 - $5.90 per diluted share[43] - Idaho Power's additional amortization of ADITC is estimated to be $50 - $60 million[43] - Idaho Power's O&M expense is projected to be $470 - $480 million[43]

Core Insights - IDACORP, Inc. (IDA) reported third-quarter 2025 earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $2.23 by 1.3% and showing a year-over-year improvement of 6.6% from $2.12 [1][8] - Total revenues for the third quarter were $524.4 million, which was 1.6% lower than the Zacks Consensus Estimate of $533 million and a decline of 0.8% from $528.5 million in the same quarter last year [2] - Customer volume increased by 2.3% year over year, contributing to an operating income boost of $7.8 million compared to the prior year [3][8] Financial Performance - Total operating expenses decreased to $379.6 million, down 3.9% from the year-ago quarter [3] - Net income for IDACORP was $124.6 million, reflecting a 9.5% increase from the previous year [3] - As of September 30, 2025, cash and cash equivalents stood at $333.2 million, down from $368.9 million at the end of 2024, while long-term debt rose to $3.33 billion from $3.05 billion [4] Guidance and Future Outlook - IDACORP raised its full-year 2025 earnings guidance to a range of $5.80-$5.90 per share, up from the previous range of $5.70-$5.85, with the current Zacks Consensus Estimate at $5.84 [5] - The company anticipates capital expenditures between $1 billion and $1.1 billion for 2025 and expects O&M expenses to be in the range of $470-$480 million, slightly up from the previous estimate [5] - Management now expects to add hydropower in the range of 6.5-7 megawatt-hours (MWh) in 2025, a reduction from the earlier forecast of 7-8 MWh [6] Market Position - IDACORP currently holds a Zacks Rank 2 (Buy), indicating a favorable market position [7]

Core Insights - IdaCorp reported quarterly earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $2.23 per share, and showing an increase from $2.12 per share a year ago, resulting in an earnings surprise of +1.35% [1][2] - The company posted revenues of $524.42 million for the quarter ended September 2025, which fell short of the Zacks Consensus Estimate by 1.57% and decreased from $528.53 million year-over-year [2] - IdaCorp's stock has increased by approximately 22.4% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.78 on revenues of $409.51 million, while for the current fiscal year, the estimate is $5.84 on revenues of $1.83 billion [7] Industry Context - The Utility - Electric Power industry, to which IdaCorp belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - IDACORP reported a net income of $124.4 million for Q3 2025, an increase of $10.8 million compared to $113.6 million in Q3 2024, resulting in earnings per diluted share of $2.26, up from $2.12[1][6] - For the first nine months of 2025, net income increased by $28.6 million compared to the same period in 2024, driven by higher net income at Idaho Power[14] - IDACORP raised its full-year 2025 earnings guidance to a range of $5.80 to $5.90 per diluted share, up from the previous range of $5.70 to $5.85[3][23] Revenue and Customer Growth - Customer growth contributed $7.8 million to operating income in Q3 2025, with an increase of approximately 15,000 customers, or 2.3%, year-over-year[8] - Retail revenues per megawatt-hour (MWh) increased operating income by $17.6 million in Q3 2025, primarily due to an overall increase in Idaho base rates effective January 1, 2025[7][15] - The net increase in retail revenues per MWh for the first nine months of 2025 was $37.2 million, largely due to the increase in Idaho base rates[15] Expenses - Total other operations and maintenance (O&M) expenses increased by $4.2 million in Q3 2025, driven by inflationary pressures and increased wildfire mitigation expenses[9] - Depreciation and amortization expenses rose by $8.1 million in Q3 2025, attributed to an increase in plant-in-service and the start of operations at a leased battery storage facility[10][18] - Non-operating expenses increased by $9.8 million in Q3 2025, primarily due to higher interest expenses from long-term debt and transmission customer deposits[12][20] Risks and Challenges - IDACORP and Idaho Power face risks related to regulatory decisions impacting cost recovery and return on investment[27] - The company is exposed to expenses and risks from capital expenditures and potential delays in utility infrastructure projects[27] - Economic conditions, including inflation and interest rates, may affect operations, capital investments, and customer demand for electricity[27] - The rapid addition of new industrial and commercial customer load presents risks of power demand exceeding available supply[27] - Changes in tax laws and regulations could impact financial performance and the availability of expected tax credits[27] - The ability to obtain debt and equity financing is influenced by credit ratings and market conditions[27] - Idaho Power's concentration in one region exposes it to regional economic conditions and legislation[27] - The company may incur remediation costs associated with the planned cessation of coal-fired operations[27] - The ability to continue paying dividends is contingent on financial performance and regulatory limitations[27] - Changes in accounting policies and new SEC requirements may affect financial reporting and obligations[27] Tax Credits - IDACORP expects Idaho Power to utilize between $50 million and $60 million of additional tax credits in 2025 under the Idaho regulatory mechanism[3][23]

Regulatory and Rate Changes - The settlement stipulation for Idaho Power's 2023 general rate case was finalized, impacting future revenue recovery[22]. - Idaho Power filed a general rate case requesting approximately $199.1 million in additional annual revenues, resulting in a 13.09% average net revenue increase for Idaho customers[67]. - The 2025 Settlement Stipulation proposes a 7.48% increase in annual Idaho-jurisdictional retail revenue, effective January 1, 2026, amounting to approximately $110 million[69]. - The OPUC approved deferral of $3.3 million in incremental costs for wildfire mitigation efforts expected in 2025[79]. - Idaho Power's request to defer $22.2 million in incremental O&M costs for wildfire mitigation efforts in 2025 was granted by the IPUC[80]. - The power cost adjustment mechanism allows Idaho Power to pass through 95% of the differences in actual net power supply expenses to customers, impacting operating cash flows[285]. - Idaho Power's transmission rate increased to $34.16 per kW-year for the period from October 1, 2025, to September 30, 2026, up from $31.55 per kW-year in the previous year, based on a net annual transmission revenue requirement of $148.5 million[288]. Financial Performance - For the three months ended September 30, 2025, total operating revenues were $524,417, a decrease of 0.21% from $528,527 in the same period of 2024[26]. - Electric utility revenues for the nine months ended September 30, 2025, were $1,405,173, down 1.5% from $1,425,606 in 2024[26]. - Operating income for the three months ended September 30, 2025, increased to $144,821, representing a 8.35% increase from $133,709 in 2024[26]. - Net income attributable to IDACORP, Inc. for the three months ended September 30, 2025, was $124,437, up 7.31% from $113,605 in 2024[28]. - Earnings per share (diluted) for the three months ended September 30, 2025, was $2.26, compared to $2.12 for the same period in 2024, reflecting a 6.6% increase[26]. - Total comprehensive income for the nine months ended September 30, 2025, was $280,678, compared to $252,805 in 2024, indicating a growth of 11.02%[28]. - Net income for the nine months ended September 30, 2025, increased to $280,396,000 from $251,952,000 in 2024, representing an increase of approximately 11.3%[37]. - The company reported a net income attributable to IDACORP, Inc. of $279,865,000 for the nine months ended September 30, 2025, compared to $251,298,000 in 2024, marking an increase of about 11.4%[39]. Capital Expenditures and Investments - The company faces risks associated with capital expenditures and potential delays in utility infrastructure projects, which could affect financial performance[20]. - Expected capital expenditures for Idaho Power are projected to be between $1.00 billion and $1.10 billion in 2025, increasing to $1.25 billion to $1.35 billion in 2026, and reaching $3.10 billion to $3.60 billion from 2027 to 2029[256]. - Idaho Power plans to acquire 330 MW of battery storage assets and has entered into agreements for an additional 250 MW of storage capacity to address projected energy and capacity deficits[257]. - The total capital expenditures for resource additions to address energy and capacity deficits from 2025 to 2029 are estimated to exceed $730 million[258]. - Idaho Power has spent approximately $578 million on the B2H project as of September 30, 2025, and expects total project costs to range between $1.5 billion and $1.7 billion[260][262]. - Idaho Power has committed approximately $84 million for its share of the GWW Transmission Line project, with total estimated costs for its share ranging from $900 million to $1.1 billion[265]. Debt and Equity - Total liabilities increased to $6,702,418 as of September 30, 2025, compared to $5,700,631 as of December 31, 2024[34]. - The company issued long-term debt amounting to $400,000,000 during the nine months ended September 30, 2025, compared to $300,000,000 in 2024, reflecting a 33.3% increase[37]. - IDACORP's total long-term debt, including the current portion, was $3,447.1 million as of September 30, 2025, compared to $3,073.7 million at the end of 2024[152]. - The total equity at the end of the period was $3,488,615,000, an increase from $3,277,573,000 in 2024, representing a growth of approximately 6.4%[39]. - IDACORP's dividends were limited to $1.4 billion as of September 30, 2025, due to restrictions from credit facility covenants[103]. Operational Risks and Challenges - Economic conditions, including inflation and interest rates, may impact operations, capital investments, and customer demand for electricity[18]. - The company is exposed to risks from supplier delays and project quality standards that could affect revenue generation[18]. - Changes in tax laws and regulations may impact the availability of expected tax credits and benefits for the company[20]. - The advancement of self-generation and alternative energy sources poses operational challenges and may reduce electricity sales[20]. - The company expects capital expenditures to continue to be influenced by various factors including supply chain disruptions and regulatory determinations[255]. Pension and Employee Benefits - Idaho Power contributed $20 million to its defined benefit pension plan during the nine months ended September 30, 2025, with no minimum contribution requirement for 2025[133]. - For the three months ended September 30, 2025, the net periodic benefit cost recognized for financial reporting was $11.303 million, compared to $11.535 million for the same period in 2024[129]. - The net periodic benefit cost for the nine months ended September 30, 2025, was $33.911 million, slightly down from $34.322 million in 2024[132]. - Idaho Power's service cost for the pension plan was $8.115 million for the three months ended September 30, 2025, down from $9.127 million in 2024[128]. Environmental and Regulatory Compliance - Idaho Power actively monitors pending environmental regulations but is currently unable to estimate their financial impact[125]. - The company has no material credit risk exposure from financial instruments, including derivatives, as of September 30, 2025[139]. - The Integrated Resource Plan filed in June 2025 identified a need for significant resources to meet projected capacity deficits in the near term[290]. - The IPUC approved the CPCN for Idaho Power to acquire two battery storage facilities with a total capacity of 100 MW to address capacity deficiencies in 2026[292].