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%.
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%.
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.
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.
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.
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.
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