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OGE Energy (OGE) Q4 Earnings Lag Estimates, Revenues Drop Y/Y

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Zacks Equity Research
·3 min read
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OGE Energy Corp.’s OGE fourth-quarter 2019 earnings of 18 cents per share missed the Zacks Consensus Estimate of 29 cents by 38%. Moreover, the reported figure plunged 33.3% from 27 cents in the year-ago quarter. The downturn can be attributed to the asset impairment at Enable Midstream.

For 2019, the company reported earnings of $2.16 per share, which improved 1.9% from $2.12 in the prior year.

Revenues

OGE Energy’s operating revenues of $472.5 million dropped 7.7% from the prior-year quarter’s $511.8 million. The dip in revenues primarily resulted from lower revenues from contracts.

For 2019, the company generated operating revenues of $2,231.6 million, which also declined up 1.7% from the prior year’s $2,270.3 million.

Operational Highlights

Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh) compared with 6.8 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up approximately 1% to 857,754.

Cost of sales summed $161.6 million during the fourth quarter compared with $228.9 million in the prior-year quarter.

Total operating expenses rose 7% year over year to $240.6 million on account of higher operation and maintenance expenses, depreciation and amortization expenses along with higher taxes (other than income).

The company’s operating income grew 21.2% in the fourth quarter to $70.3 million from the year-ago quarter’s $58 million.

Interest expenses totaled $37.8 million in the fourth quarter, in line with the year-ago quarter’s figure.

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 of the Release

OGE Energy reported a net income of $433.6 million in 2019, down from the prior year’s $425.5 million.

OG&E: The segment’s net income rose 6.7% to $350 million in 2019 from $328 million in 2018.

Natural Gas Midstream Operations: The segment posted a net income of $81 million in 2019 compared with $109 million in the previous year.

2020 Guidance

OGE Energy expects 2020 earnings in the range of $2.19-$2.31 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.28, toward the high end of the company’s guidance.

Zacks Rank

OGE Energy carries a Zacks Rank #4 (Sell).

Recent Utility Releases

CMS Energy CMS, a Zacks Rank #3 (Hold) company, reported fourth-quarter 2019 adjusted earnings per share of 68 cents, considerably up 70% from the year-ago quarter’s 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NextEra Energy NEE, a Zacks Rank #3 company, posted adjusted earnings of $1.44 per share for the December-end quarter, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

Dominion Energy D, a Zacks Rank #3 company, delivered operating earnings of $1.18 per share for the final quarter of 2019, beating the Zacks Consensus Estimate of $1.16 by 1.7%.

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