IDACORP (IDA): AI-Powered Options Outlook for 2025

IDACORP, through its primary subsidiary Idaho Power, is an electric utility that generates, transmits, distributes, sells, and purchases electric energy and capacity. Idaho Power serves approximately 649,000 retail customers in southern Idaho and eastern Oregon, including residential, commercial, industrial, and irrigation customers. The company's power supply relies on hydropower, coal-fired, and gas-fired generation facilities, as well as long-term power purchase agreements. IDACORP's business strategy emphasizes Idaho Power's regulated utility operations as its core business, focusing on keeping employees safe, growing financial strength, improving the core business, and enhancing the 'Idaho Power' brand. Idaho Power participates in wholesale energy markets and provides transmission services under its 'OATT'. The company is also committed to providing reliable, affordable, clean energy from diversified generation resources.

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IDA's technical outlook leans moderately bullish. The stock has experienced a notable upward trend over the past 90 days, climbing from approximately $114.66 to $129.63. The price is consistently above its 21-day EMA, currently at $132.96, and its 50-day SMA, around $130.03, signaling continued short-term and mid-term bullish momentum. The MACD is positive at 0.28, but the histogram is negative, suggesting a possible weakening in upward momentum. The RSI is at 39.63, indicating that the stock is not yet overbought, leaving room for further price appreciation. While the Stochastic oscillator shows the %K and %D lines are near the bottom, suggesting it may be oversold, the ADX is at 30.58, implying a defined trend. Recent price action displays a pullback, but the overall trend remains upward. The Bollinger Bands show the price is not at the upper band, suggesting there is still room to grow. Considering these factors, a continuation of the upward trend is probable in the coming months, though a period of consolidation is possible given the recent pullback.

IDACORP's MD&A reveals a mixed but generally stable financial picture. For the three months ended September 30, 2025, Idaho Power's net income increased to $122.156 million from $111.089 million in 2024. For the nine months ended September 30, 2025, Idaho Power's net income increased to $273.121 million from $245.779 million in 2024. Retail revenues decreased $8.6 million during the third quarter of 2025, compared with the same period in 2024. Retail revenues increased $16.2 million during the first nine months of 2025, compared with the same period in 2024. Customer growth continues, with a 2.3% increase in the twelve months ended September 30, 2025. However, 'lower usage (on a per customer basis), in all customer classes decreased retail revenues by $12.9 million in the third quarter of 2025' due to weather variations. Idaho Power's operating cash inflows for the nine months ended September 30, 2025, were $465 million, a decrease of $5 million, when compared with the same period in 2024. The company is making significant infrastructure investments, estimating capital expenditures between '$1.00-$1.10 billion' for 2025 and '$1.25-$1.35 billion' for 2026. These investments aim to address customer growth and peak resource needs. The company anticipates needing significant resources to meet projected capacity deficits in the near term, as highlighted in its 2025 IRP filing.

IDACORP's Q2 2025 earnings call reveals a moderately bullish outlook, supported by strong customer growth and raised earnings guidance. The company's diluted earnings per share were $1.76, up from $1.71 in the previous year. This performance led to an increase in the lower end of the full year IDACORP diluted earnings per share guidance by $0.05, setting a new range of $5.70 to $5.85. Management's tone is optimistic, highlighting continued customer growth, with Lisa Grow stating, 'we continue to field and thoughtfully process requests from businesses looking to locate and expand within our service area.' Customer base has grown 2.5% since last year's second quarter. While the company faces potential headwinds from regulatory hurdles affecting renewable projects like the Jackalope Wind project, they are actively identifying alternative capacity and energy resources, including gas-fired options. Overall, the combination of solid financial results, increased guidance, and proactive planning for future growth suggests a positive trajectory for the company in the near term.

IDA's financial performance presents a mixed picture. Revenue has generally trended upward, from $448.9M in Q1 2024 to $524.4M in Q3 2025, indicating growth in sales. However, profitability, as measured by the gross profit ratio, has been highly variable, fluctuating from a low of 0.0715 in Q1 2024 to a high of 0.8286 in Q1 2025 before settling at 0.7687 in Q3 2025. Operating cash flow has also been inconsistent, with $162.8M generated in the most recent quarter (Q3 2025) after fluctuating between positive and negative values in prior periods. Total debt has increased significantly from $2.825B in Q1 2024 to $3.665B in Q3 2025, suggesting increased leverage. The rising revenue is a positive sign, but the volatility in profitability and increasing debt levels warrant caution.

The company presents a moderately bullish investment profile based on its financial data. Revenue has shown positive growth, indicating increasing market demand or successful market penetration. The gross margin is healthy, suggesting efficient cost management in production or service delivery. A strong return on equity (ROE) signals effective utilization of shareholder investments to generate profit. The price-to-earnings (P/E) ratio suggests the stock is trading at a premium, but this could be justified by the company's growth prospects and profitability. A manageable debt-to-equity ratio indicates a reasonable level of financial leverage. The current ratio, being greater than 1, demonstrates the company's ability to cover short-term liabilities with its current assets, further solidifying its financial health. Overall, the combination of revenue growth, healthy profitability metrics, and a solid balance sheet makes the company an attractive investment for the next 12 months, although the elevated P/E ratio warrants careful monitoring.