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OGE Energy (OGE) Up 0% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for OGE Energy (OGE - Free Report) . Shares have added about 0% in that time frame, underperforming 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 Q4 Earnings Beat, Revenues Decline Y/Y
OGE Energy Corp. reported fourth-quarter 2023 earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 22 cents by 9.1%. However, the figure declined 4% from 25 cents per share recorded in the year-ago quarter.
For 2023, OGE reported earnings of $2.07 per share, a 37.7% decrease from $3.32 in 2022.
Revenues
OGE’s operating revenues of $566.7 million declined 20.4% from $711.9 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $717 million by 21%.
For 2023, OGE reported operating revenues of $2.67 billion, declining 20.8% from $3.38 billion reported in 2022.
Operational Highlights
Total sales in the reported quarter were 6.8 million megawatt-hours (MWh), down from 7.1 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 896,102.
During 2023, the cost of fuel, purchased power and direct transmission declined 45.2% to $911.7 million from $1,662.4 million in 2022.
Total operating expenses for 2023 increased 4.6% to $1.11 billion, primarily driven by higher depreciation and amortization expenses and other operation and maintenance expenses.
Operating income totaled $650.2 million in 2023, up 0.1% from the year-ago level of $649.5 million.
For 2023, interest expenses totaled $221.4 million, up 33.1% from $166.3 million recorded a year ago.
Segment Details
OGE Energy reported a fourth-quarter net income of $48.2 million, down 4.2% from the prior-year quarter’s figure of $50.3 million.
The OG&E segment’s net income amounted to $48.6 million, up 4.1% from the year-ago period’s $46.7 million. The increase was primarily backed by higher operating revenues driven by the recovery of capital investments and lower other operation and maintenance expenses.
Financial Highlights
OGE had cash and cash equivalents of $0.2 million as of Dec 31, 2023, compared with $88.1 million as of Dec 31, 2022.
Long-term debt totaled $4.34 billion as of Dec 31, 2023, up from $3.55 billion as of Dec 31, 2022.
During 2023, OGE generated cash from operating activities worth $1,232.3 million compared with the year-ago figure of $952.4 million.
2024 Guidance
OGE Energy introduced its 2024 earnings per share guidance. The company expects earnings in the range of $2.06-$2.18 per share. The Zacks Consensus Estimate is pegged at $2.14, which lies higher than the mid-point of the company’s guided range.
For its OG&E segment, OGE expects earnings to be at $2.22 per share.
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.
VGM Scores
Currently, OGE Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
OGE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
OGE Energy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Duke Energy (DUK - Free Report) , has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Duke Energy reported revenues of $7.21 billion in the last reported quarter, representing a year-over-year change of -1.9%. EPS of $1.51 for the same period compares with $1.11 a year ago.
Duke Energy is expected to post earnings of $1.39 per share for the current quarter, representing a year-over-year change of +15.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Duke Energy. Also, the stock has a VGM Score of C.
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OGE Energy (OGE) Up 0% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for OGE Energy (OGE - Free Report) . Shares have added about 0% in that time frame, underperforming 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 Q4 Earnings Beat, Revenues Decline Y/Y
OGE Energy Corp. reported fourth-quarter 2023 earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 22 cents by 9.1%. However, the figure declined 4% from 25 cents per share recorded in the year-ago quarter.
For 2023, OGE reported earnings of $2.07 per share, a 37.7% decrease from $3.32 in 2022.
Revenues
OGE’s operating revenues of $566.7 million declined 20.4% from $711.9 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $717 million by 21%.
For 2023, OGE reported operating revenues of $2.67 billion, declining 20.8% from $3.38 billion reported in 2022.
Operational Highlights
Total sales in the reported quarter were 6.8 million megawatt-hours (MWh), down from 7.1 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 896,102.
During 2023, the cost of fuel, purchased power and direct transmission declined 45.2% to $911.7 million from $1,662.4 million in 2022.
Total operating expenses for 2023 increased 4.6% to $1.11 billion, primarily driven by higher depreciation and amortization expenses and other operation and maintenance expenses.
Operating income totaled $650.2 million in 2023, up 0.1% from the year-ago level of $649.5 million.
For 2023, interest expenses totaled $221.4 million, up 33.1% from $166.3 million recorded a year ago.
Segment Details
OGE Energy reported a fourth-quarter net income of $48.2 million, down 4.2% from the prior-year quarter’s figure of $50.3 million.
The OG&E segment’s net income amounted to $48.6 million, up 4.1% from the year-ago period’s $46.7 million. The increase was primarily backed by higher operating revenues driven by the recovery of capital investments and lower other operation and maintenance expenses.
Financial Highlights
OGE had cash and cash equivalents of $0.2 million as of Dec 31, 2023, compared with $88.1 million as of Dec 31, 2022.
Long-term debt totaled $4.34 billion as of Dec 31, 2023, up from $3.55 billion as of Dec 31, 2022.
During 2023, OGE generated cash from operating activities worth $1,232.3 million compared with the year-ago figure of $952.4 million.
2024 Guidance
OGE Energy introduced its 2024 earnings per share guidance. The company expects earnings in the range of $2.06-$2.18 per share. The Zacks Consensus Estimate is pegged at $2.14, which lies higher than the mid-point of the company’s guided range.
For its OG&E segment, OGE expects earnings to be at $2.22 per share.
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.
VGM Scores
Currently, OGE Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
OGE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
OGE Energy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Duke Energy (DUK - Free Report) , has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Duke Energy reported revenues of $7.21 billion in the last reported quarter, representing a year-over-year change of -1.9%. EPS of $1.51 for the same period compares with $1.11 a year ago.
Duke Energy is expected to post earnings of $1.39 per share for the current quarter, representing a year-over-year change of +15.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Duke Energy. Also, the stock has a VGM Score of C.