OGE Energy Corp. (OGE - Free Report) reported second-quarter 2016 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 41 cents by 14.6%. Reported earnings also plunged 20.5% year over year due to higher operating expenses.
Revenues
OGE Energy’s operating revenues of $551.4 million in second-quarter 2016 inched up 0.3% from the prior-year figure of $549.9 million.
Operational Highlights
Total sales in the reported quarter amounted to 6.9 million megawatt-hours (MWh), down from 7.2 million MWh in the prior-year quarter. The decline was due to lower system and integrated market sales. The company’s customer count increased by 10,296 or 1.3%.
Cost of sales in the reported quarter was $197.7 million, down 6.3%.
Total operating expenses in the quarter under review increased 7.6% year over year to $227.8 million mainly due to higher operation and maintenance, and depreciation and amortization expenses. Operating income decreased 1% to $125.9 million from the year-ago figure of $127.2 million.
Interest expenses were $36.0 million in the reported quarter, down from $38.0 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $72 million in this quarter, down 18.2% from the prior-year figure of $88 million.
OG&E: OG&E's net income increased 4.3% year over year to $72 million in the quarter. The decrease was mainly due to higher gross margin.
Natural Gas Midstream Operations: The segment posted breakeven results in the second quarter, compared with $18 million a year ago due to timing associated with hedges placed on natural gas and natural gas liquids.
Guidance
OGE Energy has reaffirmed its 2016 consolidated earnings per share expectations in the range of $1.72–$1.83.
OG&E, the regulated utility, maintained its 2016 earnings projection in the range of $1.44–$1.50 per share.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
Public Service Enterprise Group Inc. (PEG - Free Report) reported second-quarter 2016 operating earnings of 57 cents per share, in line with both the Zacks Consensus Estimate and the year-ago figure. On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents reported in the year-ago quarter.
Zacks Rank
OGE Energy currently has a Zacks Rank #4 (Sell).
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OGE Energy Corp. (OGE - Free Report) reported second-quarter 2016 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 41 cents by 14.6%. Reported earnings also plunged 20.5% year over year due to higher operating expenses.
Revenues
OGE Energy’s operating revenues of $551.4 million in second-quarter 2016 inched up 0.3% from the prior-year figure of $549.9 million.
Operational Highlights
Total sales in the reported quarter amounted to 6.9 million megawatt-hours (MWh), down from 7.2 million MWh in the prior-year quarter. The decline was due to lower system and integrated market sales. The company’s customer count increased by 10,296 or 1.3%.
Cost of sales in the reported quarter was $197.7 million, down 6.3%.
Total operating expenses in the quarter under review increased 7.6% year over year to $227.8 million mainly due to higher operation and maintenance, and depreciation and amortization expenses. Operating income decreased 1% to $125.9 million from the year-ago figure of $127.2 million.
Interest expenses were $36.0 million in the reported quarter, down from $38.0 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $72 million in this quarter, down 18.2% from the prior-year figure of $88 million.
OG&E: OG&E's net income increased 4.3% year over year to $72 million in the quarter. The decrease was mainly due to higher gross margin.
Natural Gas Midstream Operations: The segment posted breakeven results in the second quarter, compared with $18 million a year ago due to timing associated with hedges placed on natural gas and natural gas liquids.
Guidance
OGE Energy has reaffirmed its 2016 consolidated earnings per share expectations in the range of $1.72–$1.83.
OG&E, the regulated utility, maintained its 2016 earnings projection in the range of $1.44–$1.50 per share.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
Public Service Enterprise Group Inc. (PEG - Free Report) reported second-quarter 2016 operating earnings of 57 cents per share, in line with both the Zacks Consensus Estimate and the year-ago figure. On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents reported in the year-ago quarter.
Zacks Rank
OGE Energy currently has a Zacks Rank #4 (Sell).
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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