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OGE Energy (OGE) Q1 Earnings Miss Estimates, Down Y/Y

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OGE Energy Corp.’s (OGE - Free Report) first-quarter 2019 earnings of 24 cents per share missed the Zacks Consensus Estimate of 26 cents by 7.7%. The bottom line also declined 11.1% from $1.48 registered in the year-ago quarter. The downturn can be attributed to higher expenses incurred in relation to timing of certain projects.

Revenues

OGE Energy’s operating revenues of $490 million slipped 0.5% from $492.7 million in the prior-year quarter. The downside was primarily due to year-over-year lower residential, commercial, public authorities and street light as well as integrated market revenues.

OGE Energy Corporation Price, Consensus and EPS Surprise

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

Operational Highlights

Total sales in the reported quarter amounted to 7 million megawatt-hours (MWh), higher than 6.8 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1% to 852,141.

Cost of sales summed $212.6 million compared with $210.5 million in the prior-year quarter.

Total operating expenses rose 5.6% year over year to $227.7 million on account of higher operation and maintenance expenses, depreciation and amortization expenses as well as higher taxes (other than income).

Consequently, operating income decreased 25.4% to $49.7 million from the year-ago quarter’s $66.6 million.

Interest expenses totaled $34.6 million in the first quarter, down from $38.6 million a year ago.

Other Highlights of the Release

OGE Energy reported net income of $47 million in the first quarter, down from the prior-year figure of $55 million.

OG&E:The segment’s net income declined 35.5% to $20 million from $31 million from the prior-year quarter.

Natural Gas Midstream Operations:The segment posted first-quarter net income of $22 million compared with $24 million in the prior year.

Guidance

OGE Energy reaffirmed its 2019 earnings guidance. The company still expects its earnings to lie in the range of $2.05-$2.20 per share. The current Zacks Consensus Estimate for the company’s 2019 earnings, pegged at $2.14, lies just above the mid-point of the company guided range. 

Zacks Rank

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.

Other Utility Releases

DTE Energy Company (DTE - Free Report) delivered first-quarter 2019 operating earnings per share of $2.05, which beat the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc (NEE - Free Report) reported first-quarter 2019 adjusted earnings of $2.20 per share, which outpaced the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2019 operating earnings of 67 cents per share, which exceeded the Zacks Consensus Estimate of 66 cents by 1.52%.

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