Key Takeaways IDACORP's regulated Idaho operations and 2.3% customer growth boost performance.IDA plans $1.25-$1.35B in 2026 capex and $3.1-$3.6B for 2027-2029 to expand infrastructure and service.IDACORP targets 100% clean energy by 2045, shifting coal units to natural gas in 2026 and 2030.IDACORP (IDA) has been gaining from systematic capital investment, an expanding customer base and a clean energy initiative that boosts performance.Long-term (three to five years) earnings growth of the company is projec ...

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Core Viewpoint - Investors in the Utility - Electric Power sector should consider OGE Energy and IdaCorp as potential undervalued stocks, with OGE being highlighted as the superior value option based on various valuation metrics [1][6]. Valuation Metrics - Both OGE Energy and IdaCorp currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - OGE has a forward P/E ratio of 18.72, while IdaCorp has a forward P/E of 21.52, suggesting OGE may be more attractively priced [5]. - OGE's PEG ratio is 2.68, compared to IdaCorp's PEG ratio of 2.69, indicating similar expected earnings growth rates [5]. - OGE's P/B ratio is 1.79, while IdaCorp's P/B ratio is 1.95, further supporting OGE's position as a more favorable value stock [6]. - Based on these metrics, OGE holds a Value grade of B, while IdaCorp has a Value grade of C, reinforcing the conclusion that OGE is the better value option [6].

Core Viewpoint - IdaCorp (IDA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, IdaCorp is expected to earn $5.85 per share, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade reflects an improvement in IdaCorp's underlying business, suggesting that investor sentiment may lead to increased stock prices [5][10]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating a strong potential for market-beating returns [9][10].

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]