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Why Is ONE Gas (OGS) Up 4% 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 added about 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 ONE Gas 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 catalysts.
ONE Gas Q1 Earnings Lag Estimates, Revenues Beat
ONE Gas, Inc. reported first-quarter 2023 operating earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $1.85 by 0.54%. The bottom line, however, increased 0.55% from the year-ago quarter’s figure of $1.83.
Total Revenues
ONE Gas recorded revenues of $1,032.1 million, which surpassed the Zacks Consensus Estimate of $837 million by 23.3%. The top line also increased 6.2% from $971.5 million in the prior-year period.
Highlights of the Release
Total natural gas volumes delivered in the reported quarter were 138.8 billion cubic feet, down 6.3% from the year-ago level. ONE Gas served 2,280,000 customers during the same time frame, up 0.7% from the prior-year quarter’s number.
Total operating expenses were $217.1 million, up 13.8% from that recorded in the comparable period of 2022.
Operating income increased 6% year over year to $149.2 million.
ONE Gas incurred net interest expenses of $30.1 million, up 93.1% from the year-ago level.
Financial Highlights
As of Mar 31, 2023, OGS had cash and cash equivalents of $7.8 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,875.6 million as of Mar 31, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first-quarter 2023, cash provided by operating activities was $469.1 million compared with $107.6 million in the year-ago quarter.
2023 Guidance
ONE Gas has reaffirmed its net income guidance in the range of $224-$238 million. The company’s EPS expectations lie in the band of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings is pegged at $4.13 per share, a cent lower than the mid-point of the company’s guided range.
OGS expects capital expenditures, including asset removal costs, to be approximately $675 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, ONE Gas has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 has been net zero. 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) Up 4% Since Last Earnings Report?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 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 ONE Gas 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 catalysts.
ONE Gas Q1 Earnings Lag Estimates, Revenues Beat
ONE Gas, Inc. reported first-quarter 2023 operating earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $1.85 by 0.54%. The bottom line, however, increased 0.55% from the year-ago quarter’s figure of $1.83.
Total Revenues
ONE Gas recorded revenues of $1,032.1 million, which surpassed the Zacks Consensus Estimate of $837 million by 23.3%. The top line also increased 6.2% from $971.5 million in the prior-year period.
Highlights of the Release
Total natural gas volumes delivered in the reported quarter were 138.8 billion cubic feet, down 6.3% from the year-ago level. ONE Gas served 2,280,000 customers during the same time frame, up 0.7% from the prior-year quarter’s number.
Total operating expenses were $217.1 million, up 13.8% from that recorded in the comparable period of 2022.
Operating income increased 6% year over year to $149.2 million.
ONE Gas incurred net interest expenses of $30.1 million, up 93.1% from the year-ago level.
Financial Highlights
As of Mar 31, 2023, OGS had cash and cash equivalents of $7.8 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,875.6 million as of Mar 31, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first-quarter 2023, cash provided by operating activities was $469.1 million compared with $107.6 million in the year-ago quarter.
2023 Guidance
ONE Gas has reaffirmed its net income guidance in the range of $224-$238 million. The company’s EPS expectations lie in the band of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings is pegged at $4.13 per share, a cent lower than the mid-point of the company’s guided range.
OGS expects capital expenditures, including asset removal costs, to be approximately $675 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, ONE Gas has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 has been net zero. Notably, ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.