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Why Is ONE Gas (OGS) Down 5.6% Since Last Earnings Report?
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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 5.6% 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 drivers.
ONE Gas' Q3 Earnings Match Estimates, '21 View Up
ONE Gas Inc. reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.
The bottom line declined 2.6% from the year-ago earnings, primarily due to higher operating expenses, marginally offset by new rates and residential customer growth.
Total Revenues
The company recorded revenues of $273.9 million for the third quarter, which surpassed the Zacks Consensus Estimate of $261 million by 4.9%. The top line also improved 11.9% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the third quarter was 6.8 billion cubic feet (Bcf), down 18% year over year. Total volumes delivered were 68.2 Bcf, up 10.5% from the year-ago period due to improving transportation sales volume.
Total operating expenses for the reported quarter increased 5.6% from the year-ago figure to $172.7 million.
Operating income for the reported quarter increased 2.7% year over year to $41.8 million.
For third-quarter 2021, ONE Gas’ customer base rose 0.9% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of $15.4 million, down 0.6% from the prior-year figure.
Capital expenditures and asset removal costs were $144.5 million for the reported quarter compared with $123.9 million in the year-ago period.
Financial Highlights
As of Sep 30, 2021, ONE Gas had cash and cash equivalents of $6.5 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $3,683.2 million as of Sep 30, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during the first nine months of 2021 was ($1,560.6) million versus $325.3 million in the corresponding period of 2020.
Guidance
ONE Gas raised its 2021 net income guided range to $204-$209 million from $198-$210 million and earnings per share expectation to $3.80-$3.90 from the $3.68-$3.92 band. The midpoint of its revised earnings guidance is $3.85, above the current Zacks Consensus Estimate of $3.82 for the period.
Capital expenditure is still expected to be $540 million for 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward 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 trending upward 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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Why Is ONE Gas (OGS) Down 5.6% Since Last Earnings Report?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have lost about 5.6% 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 drivers.
ONE Gas' Q3 Earnings Match Estimates, '21 View Up
ONE Gas Inc. reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.
The bottom line declined 2.6% from the year-ago earnings, primarily due to higher operating expenses, marginally offset by new rates and residential customer growth.
Total Revenues
The company recorded revenues of $273.9 million for the third quarter, which surpassed the Zacks Consensus Estimate of $261 million by 4.9%. The top line also improved 11.9% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the third quarter was 6.8 billion cubic feet (Bcf), down 18% year over year. Total volumes delivered were 68.2 Bcf, up 10.5% from the year-ago period due to improving transportation sales volume.
Total operating expenses for the reported quarter increased 5.6% from the year-ago figure to $172.7 million.
Operating income for the reported quarter increased 2.7% year over year to $41.8 million.
For third-quarter 2021, ONE Gas’ customer base rose 0.9% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of $15.4 million, down 0.6% from the prior-year figure.
Capital expenditures and asset removal costs were $144.5 million for the reported quarter compared with $123.9 million in the year-ago period.
Financial Highlights
As of Sep 30, 2021, ONE Gas had cash and cash equivalents of $6.5 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $3,683.2 million as of Sep 30, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during the first nine months of 2021 was ($1,560.6) million versus $325.3 million in the corresponding period of 2020.
Guidance
ONE Gas raised its 2021 net income guided range to $204-$209 million from $198-$210 million and earnings per share expectation to $3.80-$3.90 from the $3.68-$3.92 band. The midpoint of its revised earnings guidance is $3.85, above the current Zacks Consensus Estimate of $3.82 for the period.
Capital expenditure is still expected to be $540 million for 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward 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 trending upward 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.