- Oops!Something went wrong.Please try again later.
A month has gone by since the last earnings report for OGE Energy (OGE). Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is OGE Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
OGE Energy Q3 Earnings Top Estimates, Revenues Up Y/Y
OGE Energy Corp.’s third-quarter 2019 earnings of $1.25 per share outpaced the Zacks Consensus Estimate of $1.15 by 8.7%. The bottom line increased 22.5% from $1.02 registered in the year-ago quarter. The upside can be primarily attributed to higher contribution from OG&E — a regulated electric utility.
OGE Energy’s operating revenues of $755.4 million increased 8.1% from $698.8 million in the prior-year quarter. The upside can be attributed to year-over-year higher revenues from residential, commercial, oilfield, public authorities and street light as well as system sales.
Total sales in the reported quarter amounted to 9 million megawatt-hours (MWh), higher than 8.5 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1.2% to 855,904.
Cost of sales amounted to $234 million compared with $244.4 million in the prior-year quarter.
Total operating expenses rose 8.8% year over year to $247.1 million on higher operation and maintenance expenses, depreciation and amortization expenses as well as higher taxes other than income.
Operating income increased 20.7% to $274.3 million from the year-ago quarter’s $227.3 million.
Interest expenses totaled $39.6 million in the third quarter, up from $38.7 million in the prior-year quarter.
OGE Energy reported net income of $251 million in the third quarter, up from the prior-year quarter’s figure of $205 million.
OG&E: The segment’s net income improved 23.4% to $227.2 million from $183.9 million in the prior-year quarter.
Natural Gas Midstream Operations: The segment posted third-quarter net income of $28.59 million compared with $28.4 million in the year-ago quarter.
Previously, OGE Energy expected 2019 earnings in the range of $2.05-$2.20 per share. Now, it expects 2019 earnings per share in the range of $2.24-$2.30, whose midpoint of $2.27 is higher than the Zacks Consensus Estimate of $2.15.
The company’s projected capital expenditure is $3.4 billion for 2019-2023 period.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
OGE Energy Corporation (OGE) : Free Stock Analysis Report
To read this article on Zacks.com click here.