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Why Is OGE Energy (OGE) Up 9.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for OGE Energy (OGE - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is OGE Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
OGE Energy Reports Q4 Earnings, Sees Y/Y Revenue Increase
Shares of OGE Energy Corp. dropped 5% to reach $29.59 on Mar 1, reflecting investor skepticism following the company's lower-than-expected fourth-quarter results.
OGE Energy reported fourth-quarter 2020 adjusted earnings of 57 cents per share.
Including one-time items, the company reported GAAP earnings of 27 cents per share compared with earnings of 18 cents in the year-ago quarter.
For 2020, the company reported adjusted earnings of $2.08 per share. The company also reported GAAP loss of 87 cents per share against earnings of $2.16 recorded in 2019.
Revenues
OGE Energy’s operating revenues of $485.4 million rose 2.7% from $472.5 million in the prior-year quarter. The year-over-year upside was primarily due to higher revenues from contracts with customers and other reduced revenues.
For 2020, the company generated revenues worth $2,122.3 million compared with $2,231.6 million recorded in 2019.
Operational Highlights
Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh), which came in line with the prior-year quarter’s figure. Meanwhile, the company’s customer count inched up 1.1% to 867,389.
Cost of sales was $163.1 million compared with $161.6 million in the prior-year quarter.
Total operating expenses slipped 0.3% year over year to $239.8 million on account of reduced operation and maintenance expenses.
Operating income improved 17.4% to $82.5 million from the year-ago quarter’s $70.3 million.
Interest expenses totaled $39.6 million in the fourth quarter, up from $37.8 million a year ago.
Highlights
OGE Energy reported net loss of $173.7 million in 2020, down from the prior-year’s earnings of $433.6 million.
The OG&E segment’s net income declined 3.1% to $339 million in 2020 from $350 million reported in 2019. The decrease can be primarily attributed to higher depreciation and amortization expense on account of additional assets being placed into service, lower revenues from mild summer weather and COVID-19 impacts, higher income tax expense and higher interest expense driven by increased long-term debt outstanding.
The Natural Gas Midstream Operations segment posted net loss of $515 million against earnings of $81.4 million in the prior year. The decrease was primarily led by decrease in equity in earnings of Enable related to the impairment of OGE Energy's investment in Enable recorded in March 2020.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Why Is OGE Energy (OGE) Up 9.4% Since Last Earnings Report?
A month has gone by since the last earnings report for OGE Energy (OGE - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is OGE Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
OGE Energy Reports Q4 Earnings, Sees Y/Y Revenue Increase
Shares of OGE Energy Corp. dropped 5% to reach $29.59 on Mar 1, reflecting investor skepticism following the company's lower-than-expected fourth-quarter results.
OGE Energy reported fourth-quarter 2020 adjusted earnings of 57 cents per share.
Including one-time items, the company reported GAAP earnings of 27 cents per share compared with earnings of 18 cents in the year-ago quarter.
For 2020, the company reported adjusted earnings of $2.08 per share. The company also reported GAAP loss of 87 cents per share against earnings of $2.16 recorded in 2019.
Revenues
OGE Energy’s operating revenues of $485.4 million rose 2.7% from $472.5 million in the prior-year quarter. The year-over-year upside was primarily due to higher revenues from contracts with customers and other reduced revenues.
For 2020, the company generated revenues worth $2,122.3 million compared with $2,231.6 million recorded in 2019.
Operational Highlights
Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh), which came in line with the prior-year quarter’s figure. Meanwhile, the company’s customer count inched up 1.1% to 867,389.
Cost of sales was $163.1 million compared with $161.6 million in the prior-year quarter.
Total operating expenses slipped 0.3% year over year to $239.8 million on account of reduced operation and maintenance expenses.
Operating income improved 17.4% to $82.5 million from the year-ago quarter’s $70.3 million.
Interest expenses totaled $39.6 million in the fourth quarter, up from $37.8 million a year ago.
Highlights
OGE Energy reported net loss of $173.7 million in 2020, down from the prior-year’s earnings of $433.6 million.
The OG&E segment’s net income declined 3.1% to $339 million in 2020 from $350 million reported in 2019. The decrease can be primarily attributed to higher depreciation and amortization expense on account of additional assets being placed into service, lower revenues from mild summer weather and COVID-19 impacts, higher income tax expense and higher interest expense driven by increased long-term debt outstanding.
The Natural Gas Midstream Operations segment posted net loss of $515 million against earnings of $81.4 million in the prior year. The decrease was primarily led by decrease in equity in earnings of Enable related to the impairment of OGE Energy's investment in Enable recorded in March 2020.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.