We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
OGE Energy (OGE) Q3 Earnings Miss Estimates, Sales Down Y/Y
Read MoreHide Full Article
OGE Energy Corp.’s (OGE - Free Report) third-quarter 2020 earnings of $1.04 per share missed the Zacks Consensus Estimate of $1.09 by 4.6%. The bottom line, moreover, declined 16.8% from $1.25 registered in the year-ago quarter.
Including one-time items, the company reported GAAP earnings of 89 cents per share compared with earnings of $1.25 in the year-ago quarter.
Revenues
OGE Energy’s operating revenues of $702.1 million declined 7.1% from $755.4 million in the prior-year quarter. The year-over-year downside was primarily due to lower revenues from contracts with customers and other reduced revenues.
Operational Highlights
Total sales in the reported quarter amounted to 8.7 million megawatt-hours (MWh), lower than 9 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1.1% to 865,259.
Cost of sales summed $209.1 million compared with $234 million in the prior-year quarter.
Total operating expenses declined 4.9% year over year to $235 million on account of lower depreciation and amortization expenses along with reduced operation and maintenance expenses.
Operating income declined 5.9% to $258 million from the year-ago quarter’s $274.3 million.
Interest expenses totaled $39.8 million in the third quarter, marginally up from $39.6 million a year ago.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy reported a net income of $177 million in the third quarter, down from the prior-year quarter’s $251 million.
The OG&E segment’s net income plunged 12.3% to $199 million from $227 million reported in the prior-year quarter. The decrease can be primarily attributed to less favorable weather in the quarter compared to the year-ago quarter.
The Natural Gas Midstream Operations segment posted third-quarter net income of $10 million compared with $29 million in the prior-year quarter. The decrease was primarily led by OGE's share of Enable's impairment of its investment in the Southeast Supply Header pipeline and lower net income from its gathering and processing business.
2020 Guidance
OGE Energy updated its 2020 earnings guidance in the range of $2.00-$2.06 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.06 per share, above the midpoint of the company’s guided range.
Zacks Rank
OGE Energy currently carries a Zacks Rank #5 (Strong Sell).
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
OGE Energy (OGE) Q3 Earnings Miss Estimates, Sales Down Y/Y
OGE Energy Corp.’s (OGE - Free Report) third-quarter 2020 earnings of $1.04 per share missed the Zacks Consensus Estimate of $1.09 by 4.6%. The bottom line, moreover, declined 16.8% from $1.25 registered in the year-ago quarter.
Including one-time items, the company reported GAAP earnings of 89 cents per share compared with earnings of $1.25 in the year-ago quarter.
Revenues
OGE Energy’s operating revenues of $702.1 million declined 7.1% from $755.4 million in the prior-year quarter. The year-over-year downside was primarily due to lower revenues from contracts with customers and other reduced revenues.
Operational Highlights
Total sales in the reported quarter amounted to 8.7 million megawatt-hours (MWh), lower than 9 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1.1% to 865,259.
Cost of sales summed $209.1 million compared with $234 million in the prior-year quarter.
Total operating expenses declined 4.9% year over year to $235 million on account of lower depreciation and amortization expenses along with reduced operation and maintenance expenses.
Operating income declined 5.9% to $258 million from the year-ago quarter’s $274.3 million.
Interest expenses totaled $39.8 million in the third quarter, marginally up from $39.6 million a year ago.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote
Other Highlights
OGE Energy reported a net income of $177 million in the third quarter, down from the prior-year quarter’s $251 million.
The OG&E segment’s net income plunged 12.3% to $199 million from $227 million reported in the prior-year quarter. The decrease can be primarily attributed to less favorable weather in the quarter compared to the year-ago quarter.
The Natural Gas Midstream Operations segment posted third-quarter net income of $10 million compared with $29 million in the prior-year quarter. The decrease was primarily led by OGE's share of Enable's impairment of its investment in the Southeast Supply Header pipeline and lower net income from its gathering and processing business.
2020 Guidance
OGE Energy updated its 2020 earnings guidance in the range of $2.00-$2.06 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.06 per share, above the midpoint of the company’s guided range.
Zacks Rank
OGE Energy currently carries a Zacks Rank #5 (Strong Sell).
Recent Utility Releases
American Electric Power (AEP - Free Report) , a Zacks Rank #3 (Hold) company, reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>