Idacorp (IDA) Q4 2017 earnings summary

Executive summary

• 10th consecutive year of earnings growth; 3-year cumulative annual total shareholder return was 15%, ranking in the 85th percentile among EEI Electric Utilities Index peers.

• Customer base grew 2.0% to 545,067; industrial sales volumes rose 3.2%, while O&M remained near $350 million for the sixth consecutive year.

Financial highlights

• FY 2017 operating revenue was $1.349 billion, up 6.9% YoY; operating income was $304.4 million versus $271.8 million.

• Net income attributable to shareholders rose 7.1% to $212.4 million; diluted EPS increased to $4.21 from $3.94.

• General business revenue increased $60.0 million, driven by rate changes (+$39.8 million), customer growth (+$12.1 million) and usage (+$20.1 million); FCA revenue declined $12.1 million YoY.

• Operating cash flow was $438.0 million, up $90 million; capital expenditures, excluding AFUDC, were $277 million.

Outlook and guidance

• FY 2018 diluted EPS guidance: $4.10-$4.25; estimated 2018 capital expenditures of $280-$290 million.

• 2018-2022 capital expenditures expected to total nearly $1.5 billion; five-year hydro generation forecast for 2018 is 7.5-9.5 million MWh.

• Strategy prioritizes customer and load growth, infrastructure upgrades, new revenue opportunities, efficient operations, customer experience, safety and employee engagement.