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ONE Gas (OGS) Down 4.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ONE Gas due for a breakout? 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 catalysts.
ONE Gas' Q2 Earnings and Revenues Surpass Estimates
ONE Gas Inc. reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
The bottom line also improved 16.7% from the year-ago earnings, primarily owing to new rates and residential customer growth.
Total Revenues
The company recorded revenues of $315.6 million for the second quarter, which surpassed the Zacks Consensus Estimate of $289 million by 9.2%. The top line also improved 15.5% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the second quarter was 14.8 billion cubic feet (Bcf), down 5.1% year over year. Total volumes delivered were 73.3 Bcf, up 2.4% from the year-ago period due to improving commercial and industrial sales volume.
Total operating expenses for the reported quarter increased 2.8% from the year-ago figure to $170.8 million.
Operating income for the reported quarter increased 14.6% year over year to $51.1 million.
For second-quarter 2021, ONE Gas’ customer base rose 1.1% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of nearly $15 million, down 5.4% from the prior-year figure.
Capital expenditures and asset removal costs were $129.4 million for the reported quarter compared with $130.6 million in the year-ago period. The decrease was due to a difference in the timing of capital projects between the two periods.
Financial Highlights
As of Jun 30, 2021, ONE Gas had cash and cash equivalents of $209.1 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $4,082.8 million as of Jun 30, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during first-half 2021 was ($1,577.3) million against $278.7 million in the first half of 2020.
Guidance
ONE Gas reaffirmed 2021 net income guided range of $198-$210 million and earnings per share expectation in the $3.68-$3.92 band. The midpoint of its EPS guidance is $3.80, in line with the current Zacks Consensus Estimate of $3.79 for the period. Capital expenditure is expected to be $540 million for 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, ONE Gas has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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ONE Gas (OGS) Down 4.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ONE Gas due for a breakout? 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 catalysts.
ONE Gas' Q2 Earnings and Revenues Surpass Estimates
ONE Gas Inc. reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
The bottom line also improved 16.7% from the year-ago earnings, primarily owing to new rates and residential customer growth.
Total Revenues
The company recorded revenues of $315.6 million for the second quarter, which surpassed the Zacks Consensus Estimate of $289 million by 9.2%. The top line also improved 15.5% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the second quarter was 14.8 billion cubic feet (Bcf), down 5.1% year over year. Total volumes delivered were 73.3 Bcf, up 2.4% from the year-ago period due to improving commercial and industrial sales volume.
Total operating expenses for the reported quarter increased 2.8% from the year-ago figure to $170.8 million.
Operating income for the reported quarter increased 14.6% year over year to $51.1 million.
For second-quarter 2021, ONE Gas’ customer base rose 1.1% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of nearly $15 million, down 5.4% from the prior-year figure.
Capital expenditures and asset removal costs were $129.4 million for the reported quarter compared with $130.6 million in the year-ago period. The decrease was due to a difference in the timing of capital projects between the two periods.
Financial Highlights
As of Jun 30, 2021, ONE Gas had cash and cash equivalents of $209.1 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $4,082.8 million as of Jun 30, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during first-half 2021 was ($1,577.3) million against $278.7 million in the first half of 2020.
Guidance
ONE Gas reaffirmed 2021 net income guided range of $198-$210 million and earnings per share expectation in the $3.68-$3.92 band. The midpoint of its EPS guidance is $3.80, in line with the current Zacks Consensus Estimate of $3.79 for the period. Capital expenditure is expected to be $540 million for 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, ONE Gas has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.