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OGE Energy (OGE) Q3 Earnings Beat, Revenues Decline Y/Y

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OGE Energy Corp. (OGE - Free Report) reported third-quarter 2023 earnings of $1.20 per share, which beat the Zacks Consensus Estimate of 92 cents by 30.4%. However, the figure declined 8.4% from $1.31 per share recorded in the year-ago period.

Revenues

OGE’s operating revenues of $945.4 million declined 25.6% from $1,270.8 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $1,283 million by 26.3%.

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote

Operational Highlights

Total sales in the reported quarter were 9.3 million megawatt-hours (MWh), down from 9.4 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 893,894.

The cost of fuel, purchased power and direct transmission declined 50.5% to $333.8 million from $673.8 million a year ago.

Total operating expenses increased 4.5% to $280.5 million, primarily driven by higher depreciation and amortization expenses and other operation and maintenance expenses.

Operating income totaled $331.1 million, up 0.8% from the year-ago quarter’s level of $328.6 million.

Interest expenses totaled $51.1 million, up 28.4% from $39.8 million recorded a year ago.

Financial Highlights

OGE Energy reported a net income of $241.9 million in the third quarter of 2023, down from the prior-year quarter’s figure of $262.8 million.

The OG&E segment’s net income amounted to $246.1 million, down 2.8% from the year-ago period’s $253.1 million. The deterioration was primarily due to milder weather compared to the third quarter of 2022 and higher depreciation and interest expenses on a growing asset base.

2023 Guidance

OGE Energy updated its 2023 earnings per share (EPS) guidance. The company now expects earnings in the range of $2.02-$2.07 per share, up from the previous guidance in the band of $1.93-$2.07. The Zacks Consensus Estimate is pegged at $2.02, which lies at the low end of the company’s guided range.

For its OG&E segment, OGE now expects earnings in the band of $2.09-$2.13 per share, up from the previous range of $1.99-$2.09 per share.

Zacks Rank

OGE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2023 operating earnings per share (EPS) of $1.44 per share, which missed the Zacks Consensus Estimate of $1.72 by 16.3%. The bottom line also declined 10% from the year-ago quarter’s reported figure of $1.60 per share.

The operating net income in the quarter was $298 million compared with $311 million in the year-ago period.

PG&E Corporation’s (PCG - Free Report) adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.

In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.

NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.

For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line improved 6.7% year over year.

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