OGE Energy Corp.’s OGE second-quarter 2019 earnings of 50 cents per share outpaced the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line, however, declined 9% from 55 cents registered in the year-ago quarter. This downturn can be primarily attributed to the company’s dismal top-line performance in the reported quarter.
OGE Energy’s operating revenues of $513.7 million declined 9.4% from $567 million in the prior-year quarter. The downside was primarily due to year-over-year lower residential, commercial, industrial, public authorities and street light as well as system sales revenues.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote
Total sales in the reported quarter amounted to 6.9 million megawatt-hours (MWh), lower than 7.4 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1% to 853,500.
Cost of sales summed $178.7 million compared with $208.7 million in the prior-year quarter.
Total operating expenses rose 2% year over year to $225 million on account of higher operation and maintenance expenses as well as depreciation and amortization expense.
Consequently, operating income decreased 20.1% to $110 million from the year-ago quarter’s $137.7 million.
Interest expenses totaled $35.9 million in the second quarter, down from $40.9 million a year ago.
OGE Energy reported net income of $100 million in the second quarter, down from the prior-year figure of $111 million.
OG&E: The segment’s net income declined 18.5% to $75 million from $92 million registered in the prior-year quarter.
Natural Gas Midstream Operations: The segment posted second-quarter net income of $27 million compared with $22 million in the prior year.
OGE Energy reiterated its 2019 earnings guidance. The company still expects its earnings to be in the $2.05-$2.20 per share range. The Zacks Consensus Estimate for full-year earnings is pegged at $2.14, just above the mid-point of the company’s projected range.
OGE Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
American Electric Power Co., Inc. AEP reported second-quarter 2019 adjusted earnings of $1.00 per share, which outpaced the Zacks Consensus Estimate of 98 cents by 2%.
NextEra Energy’s NEE second-quarter 2019 adjusted earnings came in at $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. The bottom line also increased 12.9% on a year-over-year basis.
CMS Energy Corporation CMS reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.
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