COC IDA research note 02-14-11.pdf

Please refer to pages 2-3 of this report for detailed disclosure and certification information.
* D. A. Davidson & Co. makes a market in this security.
RESEARCH NOTE
Institutional Equity Research

IDACORP, INC.
February 15, 2011 IDA * – NYSE

Rating: Buy
Price: (2/14/11) $38.01
Price Targets: 12-18 month: $42.00
5-year: $44.00

Industry:
Utilities

James L. Bellessa, Jr., CFA
406.791.7230
[e-mail]

Michael Bates
Research Associate
406.791.7216
[e-mail]

4Q Preview: EPS Likely Held Back By Mild Temperatures and Tax Items.

• IDACORP, Inc. is scheduled to report 4Q’10 earnings on Wednesday, February
23rd before the market opens. A conference call with management will be held on
the same day at 4:30 PM ET/1:30 PM PT.
• We are looking for EPS of $0.35, down from $0.49 a year ago. The consensus
estimate of five analysts is $0.36 per share. Management’s inferred 4Q’10
guidance range has been $0.20-$0.35. We assume that the implied decline in
quarterly EPS is largely a function of year-end tax adjustments, eliminating or
reversing a net tax benefit in 4Q’09. Our full-year 2010 earnings estimate of
$2.89 per share compares to the current consensus of $2.86. If our 2010 forecast
is accurate, full-year results would come in at the upper end of management’s
guidance range of $2.75-$2.90.
• Utility results likely hurt by weather. We expect 4Q’10 utility segment EPS of
$0.34, down from $0.54 a year ago. Besides the reduction/elimination of tax
benefits, mild winter weather may have had an impact. Temperatures, as
measured by heating-degree days, were 18% milder in 4Q’10 than 4Q’09. We
believe the weather’s negative pressures were at least partially mitigated by a
number of ratemaking items, including the sharing between customers and
shareholders of any reduction in the Power Cost Adjustment and a change in the
Fixed Cost Adjustment (the benefits of these two programs began on June 1st).
• Modest non-regulated earnings contribution expected. We are forecasting
that IDACORP’s non-regulated activities contributed earnings of $0.01 per share
versus a loss of $0.05 per share a year earlier. Management’s inferred guidance
suggests that 4Q’10 non-regulated activities should be at or above breakeven to
allow full-year, non-regulated subsidiary earnings and holding company expenses
to be in the $0-$3 million range.
• Conference call expectations. We anticipate management will initiate 2011
EPS guidance and provide more clarity on the company’s tax picture We will also
be looking for additional details about the recent rule change allowed by
regulators to accommodate what appears to be a healthy pipeline of new
industrial customers’ requests to the utility for power.
• Our 12-18 month price target of $42 equates to 14.5x our 2011 EPS estimate of
$2.90. We rate the shares BUY.

D.A. Davidson & Co.
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Copyright D.A. Davidson & Co., 2011. All rights reserved.
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Required Disclosures
D.A. Davidson & Co. expects to receive, or intends to seek, compensation for investment banking services from this company in the
next three months.
D.A. Davidson & Co. is a full service investment firm that provides both brokerage and investment banking services. James L.
Bellessa, Jr., CFA and Michael Bates, the research analysts principally responsible for the preparation of this report, will receive
compensation that is based upon (among other factors) D.A. Davidson & Co.’s investment banking revenue. However, D.A. Davidson
& Co.’s analysts are not directly compensated for involvement in specific investment banking transactions.
We, James L. Bellessa, Jr., CFA and Michael Bates, attest that (i) all the views expressed in this research report accurately reflect our
personal views about the common stock of the subject company, and (ii) no part of our compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or views expressed in this report.

Ratings Information

D.A. Davidson & Co. Institutional Research Ratings Buy Neutral Underperform
Risk adjusted return potential azbycx Over 15% total return
expected on a risk adjusted
basis over next 12-18 months
>0-15% return potential
on a risk adjusted basis
over next 12-18 months
Likely to remain flat or lose
value on a risk adjusted basis
over next 12-18 months
Distribution of Ratings (as of 12/31/10) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 57% 39% 4%
Corresponding Individual Investor Group Ratings Outperform Market Perform Underperform
and Distribution 81% 19% 0%
Distribution of Combined Ratings 59% 37% 4%
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage 8% 4% 10%
Individual Investor Group Coverage 0% 20% 0%
Distribution of Combined Investment Banking 7% 5% 10%

D.A. Davidson & Co.’s Institutional Research Rating Scale (maintained since 7/9/02): Buy, Neutral, Underperform
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2011. All rights reserved.
3
Target prices are our Institutional Research Department’s evaluation of price potential over the next 12-18 months and 5 years, based
upon our assessment of future earnings and cash flow, comparable company valuations, growth prospects and other financial criteria.
Certain risks may impede achievement of these price targets including, but not limited to, broader market and macroeconomic
fluctuations and unforeseen changes in the subject company’s fundamentals or business trends.

Other Disclosures

Information contained herein has been obtained by sources we consider reliable, but is not guaranteed and we are not soliciting any
action based upon it. Any opinions expressed are based on our interpretation of data available to us at the time of the original
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