U.S. markets closed
  • S&P 500

    3,380.80
    +17.80 (+0.53%)
     
  • Dow 30

    27,816.90
    +35.20 (+0.13%)
     
  • Nasdaq

    11,326.51
    +159.00 (+1.42%)
     
  • Russell 2000

    1,531.20
    +23.51 (+1.56%)
     
  • Crude Oil

    38.66
    -1.56 (-3.88%)
     
  • Gold

    1,910.60
    +15.10 (+0.80%)
     
  • Silver

    23.90
    +0.40 (+1.71%)
     
  • EUR/USD

    1.1748
    +0.0022 (+0.19%)
     
  • 10-Yr Bond

    0.6770
    0.0000 (0.00%)
     
  • GBP/USD

    1.2887
    -0.0034 (-0.26%)
     
  • USD/JPY

    105.5490
    +0.1190 (+0.11%)
     
  • BTC-USD

    10,593.46
    -202.57 (-1.88%)
     
  • CMC Crypto 200

    227.09
    +3.40 (+1.52%)
     
  • FTSE 100

    5,879.45
    +13.35 (+0.23%)
     
  • Nikkei 225

    23,185.12
    0.00 (0.00%)
     

OGE Energy (OGE) Q2 Earnings Miss Estimates, Sales Down Y/Y

Zacks Equity Research

OGE Energy Corp.’s OGE second-quarter 2020 earnings of 51 cents per share missed the Zacks Consensus Estimate of 55 cents by 7.3%. The bottom line, however, improved 2% from 50 cents registered in the year-ago quarter.

Including one-time items, the company reported GAAP earnings of 43 cents per share compared with earnings of 50 cents in the year-ago quarter.

Revenues

OGE Energy’s operating revenues of $503.5 million declined 2% from $513.7 million in the prior-year quarter. The year-over-year downside was primarily due to lower revenues from contracts with customers.

Operational Highlights

Total sales in the reported quarter amounted to 6.8 million megawatt-hours (MWh), lower than 6.9 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1.15% to 863,264.

Cost of sales summed $137.4 million compared with $178.7 million in the prior-year quarter.

Total operating expenses rose 7% year over year to $240.7 million on account of higher depreciation and amortization expenses along with increased taxes.

Operating income grew 14% to $125.4 million from the year-ago quarter’s $110 million.

Interest expenses totaled $40.8 million in the second quarter, up from $35.9 million a year ago.

OGE Energy Corporation Price, Consensus and EPS Surprise

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

OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote

Other Highlights

OGE Energy reported net income of $86 million in the second quarter, down from the prior-year figure of $100 million.

OG&E: The segment’s net income increased 5.3% to $79 million from $75 million registered in the prior-year quarter. The primary driver for net income was the recovery of additional assets in service.

Natural Gas Midstream Operations: The segment posted second-quarter net income of $19 million compared with $27 million in the prior-year quarter. The decrease can be attributed to lower net income from Enable's gathering and processing business, resulting from reduced natural gas and crude oil gathered volumes and natural gas processed volumes.

2020 Guidance

OGE Energy updated its 2020 earnings in the range of $2.08-$2.18 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.11, lower than the midpoint of the guided range.

Zacks Rank

OGE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

CMS Energy Corporation CMS reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.

FirstEnergy Corporation FE delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

NextEra Energy NEE reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>


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