Core Viewpoint - IDACORP, Inc. reported strong financial performance for the fourth quarter and full year of 2024, with earnings per share exceeding estimates and overall revenue growth driven by customer growth and favorable weather conditions [1][2][3]. Financial Performance - Fourth-quarter 2024 earnings were 70 cents per share, surpassing the Zacks Consensus Estimate of 63 cents by 11.1%, compared to 61 cents per share in the same quarter last year [1]. - Full-year 2024 earnings reached $5.50 per share, an increase from $5.14 per share in the previous year, benefiting from strong customer growth and favorable weather [2]. - Total revenues for 2024 were $1.82 billion, reflecting a 3.4% increase from $1.76 billion in 2023 [3]. Operational Highlights - Customer growth in service areas increased by 2.6% year over year for the 12 months ending December 31, 2024, contributing to a $1.9 million boost in operating income [4]. - Net income increased by $6.6 million from the prior year, primarily due to higher net income at Idaho Power [5]. - The company added 7.2 MWh of hydropower to its generation portfolio in 2024 [5]. Financial Position - As of December 31, 2024, cash and cash equivalents were $368.9 million, up from $327.4 million a year earlier [6]. - Long-term debt increased to $3.05 billion from $2.78 billion as of December 31, 2023 [6]. - Net cash provided by operating activities was $594.4 million, compared to $267 million in the previous year [6]. Guidance and Projections - IDACORP initiated its full-year 2025 earnings guidance of $5.65-$5.85 per share, with the Zacks Consensus Estimate at $5.85 per share [7]. - Projected capital expenditures for 2025 are expected to be between $1 billion and $1.1 billion [7]. - The company anticipates O&M expenses to range from $465 million to $475 million and plans to add hydropower in the range of 6.5-8.5 MWh in 2025 [7].

Financial Performance - IDACORP reported Q4 2024 net income of $37.9 million, or $0.70 per diluted share, up from $31.3 million, or $0.61 per diluted share in Q4 2023, representing a 21% increase in net income[1][4] - For the full year 2024, IDACORP's net income was $289.2 million, or $5.50 per diluted share, compared to $261.2 million, or $5.14 per diluted share in 2023, marking an increase of 11%[1][4] - IDACORP anticipates 2025 earnings guidance in the range of $5.65 to $5.85 per diluted share, assuming normal weather conditions and power supply expenses[3][23] Revenue and Customer Growth - Retail revenues per megawatt-hour (MWh) increased by $52.7 million in 2024, primarily due to higher Idaho base rates effective January 1, 2024[14] - Customer growth of 2.6% contributed an additional $19.0 million to operating income in 2024, while usage per retail customer added $4.5 million[15] Capital Expenditures and Investments - Capital expenditures for Idaho Power are projected to be between $1,000 million and $1,100 million in 2025, up from $943 million in 2024[23] - The company plans to utilize $60 to $77 million in additional tax credits under the Idaho regulatory mechanism in 2025[3][23] Operating Expenses - Other operations and maintenance (O&M) expenses increased by $61.1 million in 2024, driven by pension-related expenses and wildfire mitigation costs[17] - Depreciation expense rose by $28.1 million in 2024 due to an increase in plant-in-service[18] - Non-operating expenses increased by $2.2 million in 2024, primarily due to higher interest expenses on long-term debt[20] Risks and Challenges - IDACORP and Idaho Power's forward-looking statements include expectations regarding future financial performance, power generation, and capital expenditures[27] - The company anticipates potential impacts from regulatory decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission on cost recovery and return on investment[27] - Risks associated with capital expenditures and utility infrastructure projects may affect Idaho Power's ability to serve customers and generate revenues[27] - Economic conditions, including inflation and interest rates, could impact operations, capital investments, and customer demand for electricity[27] - The company faces challenges related to workforce factors, including attracting and retaining skilled workers and managing labor costs[27] - Changes in laws and regulations may result in increased compliance costs and impact recovery of costs through rates[27] - Abnormal weather conditions and natural disasters could affect customer sales and hydropower generation[27] Strategic Focus - The company is focused on the transition from coal-fired operations to natural gas, which may involve remediation costs[28] - IDACORP aims to maintain dividend payments and achieve target payout ratios based on financial performance and capital requirements[28] - The emergence of new energy and transmission markets in the western United States may alter market dynamics affecting the company[28]

Financial Performance - Idaho Power's net income for the last quarter was reported at $45 million, reflecting a 12% increase compared to the same period last year[20]. - Total retail revenues for Idaho Power in 2024 reached $1,552.78 million, an increase of 5.4% from $1,472.67 million in 2023[42]. - Idaho Power's total electric utility operating revenues for 2024 were $1,822.97 million, compared to $1,762.89 million in 2023, reflecting a year-over-year growth of 3.4%[42]. - Retail energy sales in 2024 totaled 15,971 thousand MWh, up from 15,515 thousand MWh in 2023, indicating a growth of 2.9%[42]. - Idaho Power's wholesale energy sales increased significantly to 1,412 thousand MWh in 2024, compared to 840 thousand MWh in 2023, marking a growth of 67.6%[42]. - Idaho Power's irrigation revenue for 2024 was $196.40 million, up from $173.93 million in 2023, indicating a growth of 12.8%[42]. Capital Expenditures and Investments - Idaho Power's projected capital expenditures for 2024 are estimated to be approximately $300 million, focusing on infrastructure improvements and renewable energy projects[20]. - The company plans to invest $50 million in the development of energy storage technologies over the next three years[20]. - Idaho Power plans to own a 300 MW wind turbine generator power plant in Wyoming, with a planned in-service date in 2027[48]. - Idaho Power's environmental compliance expenditures are projected to be $57 million in 2025 and $143 million for 2026-2027[87]. - The company is planning to convert coal-fired operations to natural gas, which involves remediation costs[21]. Renewable Energy and Sustainability - Idaho Power anticipates a 10% growth in renewable energy generation capacity by 2025, aligning with state regulatory goals[20]. - The company is committed to transitioning away from coal-fired operations, with plans to convert existing plants to natural gas by 2026[20]. - Idaho Power plans to achieve a targeted 88% reduction in annual CO2 emissions by 2030 compared to the 2005 baseline year[82]. - Idaho Power aims to achieve 100% clean energy by 2045, with short-term and medium-term goals for CO2 emission reductions, subject to various risks and uncertainties[153]. - The preferred resource portfolio in the 2023 IRP includes 8,436 MW of resource capacity, with significant additions of 3,325 MW of solar and 1,800 MW of wind over the next 20 years[74]. Customer Demand and Load - The company reported a 5% increase in customer load demand year-over-year, driven by new industrial and commercial customers[20]. - Idaho Power's highest all-time system peak demand reached 3,793 MW on July 22, 2024, and the winter peak demand was 2,719 MW on January 16, 2024[50]. - Idaho Power's average monthly usage per residential customer has declined from 1,032 kWh in 2012 to 914 kWh in 2024, indicating a long-term decrease in usage per customer[115]. - The company has experienced a net growth in customer numbers, but there is no guarantee that this growth will continue at the current rate[115]. Regulatory and Compliance Challenges - The company is facing regulatory challenges that could impact its cost recovery mechanisms, particularly in Idaho and Oregon[20]. - Idaho Power's regulatory cost recovery mechanisms may not function as intended, potentially affecting financial condition and results of operations[112]. - Regulatory approvals are necessary for Idaho Power to borrow money or issue securities, making it dependent on favorable orders from public utility commissions[161]. - Changes in legislation and regulation may materially impact IDACORP and Idaho Power's business, including potential changes in tax policy and environmental regulations[148]. Operational Risks and Challenges - The company is exposed to risks from natural disasters and severe weather, which can affect power generation and service interruptions[20]. - Changes in weather conditions and climate change can significantly affect Idaho Power's operating results, with demand peaking during hot summer months and cold winter months[118]. - Idaho Power's operations are vulnerable to cyber and physical security attacks, which could disrupt its ability to generate, purchase, or transmit power[127]. - The company faces potential liabilities from wildfires, which could adversely impact its financial condition and results of operations[124]. - Factors such as labor shortages, supply chain disruptions, and environmental regulations could impact the ability to meet energy demands and increase operational costs[136]. Strategic Initiatives - Idaho Power's strategy focuses on enhancing financial strength and improving its core business, emphasizing reliable and affordable clean energy[36]. - The company is committed to balancing the interests of shareholders, customers, employees, and other stakeholders in its operations[36]. - Idaho Power is actively pursuing FERC relicensing for its largest hydropower generation source, the HCC, and its second largest, American Falls[55]. - The company is exploring potential acquisitions to expand its service area and customer base, with a focus on renewable energy assets[20]. Employee and Human Capital Management - As of December 31, 2024, IDACORP had 2,130 full-time employees, with 48% having worked at the company for over 10 years[91]. - Idaho Power's human capital management programs focus on attracting and retaining high-quality employees, with regular engagement surveys conducted[90]. - Idaho Power's compensation and benefits include a 401k plan with company matching contributions and a defined benefit pension plan that vests after five years[94]. Financial Risks - Financial risks include the ability to meet financial obligations and mitigate exposure to market risks, including liquidity and interest rate risks[159]. - A downgrade in credit ratings could limit access to capital and increase borrowing costs, potentially requiring collateral with transaction counterparties[162]. - The unavailability of expected tax credits or benefits could adversely impact the economic viability of planned or existing facilities[150]. - Idaho Power's pension and postretirement benefit plan costs are affected by investment performance, with rising health care costs posing additional financial challenges[166].

Core Viewpoint - IdaCorp (IDA) has experienced a significant downtrend with a 7.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1][3]. Group 1: Stock Performance and Analyst Sentiment - The stock has faced excessive selling pressure, leading to a decline of 7.3% in the last month [1]. - Analysts have raised earnings estimates for IDA, resulting in a 0.1% increase in the consensus EPS estimate over the past 30 days, indicating a potential for price appreciation [3]. - IDA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [3]. Group 2: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [4]. - IDA's current RSI reading is 28.8, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5].

Group 1 - The article emphasizes the importance of investing in qualitative dividend stocks that have a history of dividend growth and are expected to continue this trend [3] - The author has a beneficial long position in META shares, indicating confidence in the company's future performance [3] Group 2 - The author has been involved in dividend investing since 2009 and has documented their journey towards financial independence through a blog focused on dividend growth investing [2] - The article reflects the author's personal opinions and experiences in the investment community, particularly regarding dividend stocks [3]

Core Insights - The U.S. electric power sector is transitioning towards cleaner energy sources, with companies aiming for 100% clean energy and zero emissions in the coming years, supported by government tax credits and a goal of carbon neutrality by 2050 [2] - IDACORP and Pinnacle West Capital Corporation are compared for investment potential, with IDACORP having a market capitalization of $5.88 billion and Pinnacle West at $9.73 billion [4] - IDACORP's 2024 earnings estimate is $5.42 per share on revenues of $1.85 billion, reflecting a 5.5% increase in earnings and a 4.5% increase in revenue year-over-year, while Pinnacle West's estimates are $5.14 per share on revenues of $5.05 billion, indicating a 16.6% increase in earnings and a 7.6% increase in revenue [5] - Over the past six months, IDACORP's shares have risen by 19.9%, outperforming the industry growth of 7.2%, while Pinnacle West's shares increased by 13.3% [6] Industry Factors - Utilities benefit from favorable factors such as new electric rates, customer additions, cost management, and energy-efficiency programs, alongside investments to enhance electric infrastructure resilience against extreme weather [7] - The Federal Reserve's reduction of the fund rate by 1 percentage point since September 2024 is expected to benefit capital-intensive utilities by lowering capital servicing costs, thus improving margins and profitability [8] - The U.S. Energy Information Administration projects that renewable energy will account for 23% of electricity generation in 2024 and 25% in 2025, with a 2% increase in electricity sales expected this winter compared to last year [9] Company Financials - IDACORP has a debt-to-capital ratio of 48.8%, while Pinnacle West's ratio is 59%, both below the industry average of 61.32% [12] - The times interest earned (TIE) ratio for IDACORP is 2.9 and for Pinnacle West is 2.8, indicating sufficient financial flexibility to meet near-term interest obligations [15] - IDACORP's current ratio is 1.71, significantly better than the industry average of 0.77, while Pinnacle West's current ratio is 0.71, suggesting IDACORP has better short-term asset management [16] Dividend Information - IDACORP's dividend yield is 3.12%, and Pinnacle West's is 4.18%, both exceeding the S&P 500 composite average of 1.19% [17] Investment Recommendation - Both IDACORP and Pinnacle West Capital are positioned as wise investments, but IDACORP is favored due to better debt management, TIE ratio, liquidity, and price performance [18]

Group 1 - IdaCorp currently has a Zacks Rank of 2 (Buy), indicating a positive outlook for the stock [1][2] - The consensus EPS estimate for IdaCorp has increased by 0.4% over the past 90 days, reflecting improved analyst sentiment [6] - Year-to-date, IdaCorp has returned approximately 12.3%, outperforming the Utilities sector's average return of 11.4% [4] Group 2 - The Utilities sector, which includes IdaCorp, has a Zacks Sector Rank of 7 out of 16 groups, indicating a relatively strong position within the sector [8] - IdaCorp belongs to the Utility - Electric Power industry, which has gained about 15.3% year-to-date, although IdaCorp is slightly underperforming compared to this industry average [7] - Another stock in the Utilities sector, PG&E, has a year-to-date return of 12.2%, showing competitive performance within the sector [9]

Core Viewpoint - IDACORP Inc. (IDA) is positioned as a strong investment option in the utility sector due to its strategic investments aimed at enhancing infrastructure, effective cost management, and a focus on clean energy production [1] Group 1: Growth Projections - The Zacks Consensus Estimate for IDA's 2024 earnings per share (EPS) has increased by 0.6% to $5.41 over the past 60 days [3] - The sales estimate for 2024 is projected at $1.85 billion, reflecting a year-over-year increase of 4.5% [3] - IDA's long-term earnings growth rate is forecasted at 8.31%, with an average earnings surprise of 4.3% over the last four quarters [3] Group 2: Financial Position - IDA's total debt to capital ratio stands at 48.8%, significantly better than the industry average of 61.7% [4] - The time-to-interest earned ratio is 2.9, indicating the company's capability to meet future interest obligations comfortably [4] Group 3: Liquidity - The current ratio for IDA is 1.71, surpassing the industry average of 0.77, suggesting sufficient short-term assets to cover liabilities [5] Group 4: Dividend History - IDA has consistently increased shareholder value through regular dividends, currently paying 86 cents per share, which translates to an annualized dividend of $3.44, up 3.6% from the previous rate [6] - The current dividend yield is 3.07%, outperforming the Zacks S&P 500 composite's yield of 1.18% [6] Group 5: Systematic Investments - IDA plans capital expenditures of $925-$975 million in 2024, $1-$1.1 billion in 2025, and $3.5-$4 billion from 2026 to 2028, indicating a 46% increase from the previous five-year capital expenditure plan [7] - These investments are expected to strengthen IDA's infrastructure and expand its operations, allowing for a broader customer base [7] Group 6: Stock Performance - Over the past six months, IDA's shares have increased by 23.1%, compared to the industry's growth of 7.2% [8]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3][4] - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperforming the market [4] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [5] - **Growth Score**: Evaluates a company's financial health and future growth potential through earnings and sales projections [6] - **Momentum Score**: Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [7] - **VGM Score**: A composite score that combines all three Style Scores, providing a comprehensive assessment of stocks [8] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, helping investors build successful portfolios [9] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10] Stock to Watch: IDACORP, Inc. - IDACORP, Inc. is a regulated utility company serving 633,000 retail customers in southern Idaho and eastern Oregon [15] - Currently rated 3 (Hold) with a VGM Score of B, IDA has a Momentum Style Score of A and has seen a 14.2% increase in shares over the past four weeks [16] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate to $5.41 per share, with an average earnings surprise of 4.3% [16][17]

Financial Data and Key Metrics Changes - IDACORP's Q3 2024 diluted earnings per share were $2.12, an increase from $2.07 in Q3 2023 [5] - For the first nine months of 2024, earnings per diluted share were $4.82, compared to $4.53 for the same period last year [6] - The company updated its full-year 2024 earnings guidance to a range of $5.35 to $5.45 per diluted share [7] Business Line Data and Key Metrics Changes - Net income increased by $8.3 million in Q3 2024, attributed to higher net income at Idaho Power from increased base rates and customer growth of 2.6% [19] - Total other O&M expenses rose by $20.3 million, influenced by increased pension-related expenses and wildfire mitigation costs [20] - Cash flow from operations improved significantly, with a nearly $300 million increase compared to last year [22] Market Data and Key Metrics Changes - The customer base grew by 2.6% year-over-year, with residential customers increasing by 2.9% [11] - Year-to-date growth in industrial customer segments included 15% for manufacturing and 12% for food processing [11] - The preliminary five-year forecast for retail sales growth is now 7.7% annually, up from 5.5% in the previous forecast [11][12] Company Strategy and Development Direction - IDACORP is focusing on substantial infrastructure investments to meet growing customer demand, including a 300 megawatt wind generation facility [14] - The company is actively working on regulatory cases in Idaho and Oregon, with a general rate case settlement in Oregon resulting in a 12% revenue increase [15] - The company plans to file rate cases more frequently to reduce regulatory lag and align cash flow with capital expenditures [40][41] Management's Comments on Operating Environment and Future Outlook - Management noted strong energy sales driven by hot weather and customer growth, with a record system peak of 3,793 megawatts [9][10] - The outlook for hydropower conditions remains positive heading into winter, with expectations for a good snowpack [16] - Management expressed confidence in converting capital expenditures into rate base, anticipating a significant increase in earnings potential over time [42][43] Other Important Information - The company plans to maintain a capital ratio of around 50% equity and debt, estimating external financing needs of about $1.3 billion in equity and $2 billion in debt from 2025 to 2028 [35][36] - IDACORP's estimated rate-based CAGR is projected at 16.9%, indicating robust growth potential [29] Q&A Session Summary Question: Expectations on earnings trajectory and tax credit usage - Management expects regulatory lag to impact earnings consistency but anticipates that customer growth will eventually support earnings levels [50][52] Question: Future generation needs and resource split - Management highlighted the importance of both generation and transmission assets to meet demand, with a focus on dispatchable resources for winter [54] Question: Rate pressure and affordability for customers - Management indicated that residential rates would likely track inflation, while industrial rates would be higher due to special contracts [59] Question: Dividend growth outlook - Management plans to slow dividend growth to reinvest in the business, with expectations for more steady increases in the future [78][79] Question: Clarification on ADITC recognition - Management explained that ADITC recognition may vary throughout the year based on operational performance and regulatory processes [81][82] Question: Irrigation sales performance - Management noted that irrigation sales were affected by crop cycles and weather conditions, leading to a smaller increase than expected [84] Question: Timeline for large load potential customers - Management indicated that responses from potential large load customers are expected in the coming months [85]