OGE Energy Corp.’s OGE 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.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote
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.
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.
NextEra Energy, Inc NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%.
Xcel Energy Inc XEL posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%.
American Electric Power Co., Inc AEP reported third-quarter 2019 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
OGE Energy Corporation (OGE) : Free Stock Analysis Report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.