Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.01
    +1.66 (+2.04%)
     
  • Gold

    2,241.50
    +28.80 (+1.30%)
     
  • Silver

    24.99
    +0.24 (+0.96%)
     
  • EUR/USD

    1.0790
    -0.0040 (-0.37%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2620
    -0.0018 (-0.15%)
     
  • USD/JPY

    151.3800
    +0.1340 (+0.09%)
     
  • Bitcoin USD

    70,707.75
    +1,811.95 (+2.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

OGE Energy (OGE) Misses on Q4 Earnings, Revenues Rise Y/Y

OGE Energy Corp. OGE reported fourth-quarter 2016 earnings of 29 cents per share, which missed the Zacks Consensus Estimate of 31 cents by 6.5%. Reported earnings, however, improved 93.3% year over year, driven by higher transmission revenues and favorable weather conditions.

 

 

During 2016, the company reported earnings of $1.69 per share, up 24.3% from $1.36 in 2015. However, the full-year earnings figure missed the Zacks Consensus Estimate of $1.72 by 1.7%.

Revenues

OGE Energy’s operating revenues of $530.8 million in fourth-quarter 2016 rose 18.7% from the prior-year figure of $447.1 million.

During 2016, the company generated operating revenues of $2.26 billion, which exceeded the year-ago figure of $2.20 billion by 2.8%.

Operational Highlights

Total sales in the reported quarter amounted to 7.8 million megawatt-hours (MWh), up from 6.4 million MWh in the prior-year quarter. The upside was driven by higher system as well as integrated market sales. The company’s customer count increased by 8,806 or 1.1%.

Cost of sales in the reported quarter was $234.7 million, up 28.5%.

Total operating expenses in the quarter under review decreased 1.7% year over year to $213.9 million mainly due to lower other operation and maintenance (O&M) expenses as well as taxes other than income expenses. As a result, operating income increased 75.6% to $82.2 million from the year-ago figure of $46.8 million.

Interest expenses totaled $34.4 million in the reported quarter, down from $36.6 million a year ago.

OGE Energy Corporation Price, Consensus and EPS Surprise

 

OGE Energy Corporation Price, Consensus and EPS Surprise | OGE Energy Corporation Quote

Other Highlights of the Release

OGE Energy reported net income of $337 million in this quarter, up 21.2% from the prior-year figure of $278 million.

OG&E: OG&E's net income increased 5.6% year over year to $284 million in the quarter, mainly on higher gross margins.

Natural Gas Midstream Operations: The segment posted net income of $53 million in the fourth quarter, as compared with $9 million a year ago. A pre-tax charge of approximately $114 million incurred during the fourth quarter of 2015 primarily contributed to the improvement in net income.

Guidance

OGE Energy has provided guidance for 2017. The company expects 2017 consolidated earnings per share in the band of $1.93­­–$2.09.

OG&E, the regulated utility, is projected to earn in the range of $1.58–$1.70 per share, while the earnings contribution from its ownership interest in Enable Midstream is expected at around 35–39 cents per share.

Peer Releases

FirstEnergy Corporation FE announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.

Entergy Corporation ETR reported fourth-quarter 2016 operational earnings of 31 cents per share, beating the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.

CMS Energy Corporation CMS reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.

Zacks Rank

OGE Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.  Be among the very first to see them >>


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
 
CMS Energy Corporation (CMS): Free Stock Analysis Report
 
Entergy Corporation (ETR): Free Stock Analysis Report
 
FirstEnergy Corporation (FE): Free Stock Analysis Report
 
OGE Energy Corporation (OGE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement