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OGE Energy (OGE) Q3 Earnings in Line, '16 Guidance Intact
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OGE Energy Corp.(OGE - Free Report) reported third-quarter 2016 earnings of 92 cents per share, in line with the Zacks Consensus Estimate. Reported earnings improved 67.3% year over year, driven by significant contributions from OG&E – a regulated electric utility.
OGE Energy’s operating revenues of $743.9 million in third-quarter 2016 rose 3.3% from the prior-year figure of $719.8 million.
Operational Highlights
Total sales in the reported quarter amounted to 8.7 million megawatt-hours (MWh), up from 8.3 million MWh in the prior-year quarter. The upside was driven by higher system and integrated market sales. The company’s customer count increased by 10,638 or 1.3%.
Cost of sales in the reported quarter was $269.8 million, up 3.8%.
Total operating expenses in the quarter under review increased 3.6% year over year to $216.8 million mainly due to higher other operation and maintenance (O&M), and depreciation and amortization expenses. Operating income however increased 2.6% to $257.3 million from the year-ago figure of $250.8 million.
Interest expenses totaled $35.4 million in the reported quarter, down from $37.0 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $183.6 million in this quarter, up 65.1% from the prior-year figure of $111.2 million.
OG&E: OG&E's net income dropped 1.8% year over year to $160 million in the quarter. The decrease was mainly due to higher operating and income tax expenses, partially offset by higher gross margins.
Natural Gas Midstream Operations: The segment posted net income of $23 million in the third quarter, as against a loss of $50 million a year ago. A pre-tax charge of approximately $108 million incurred during the third quarter of 2015 and lower O&M expenses in the third quarter of 2016 contributed to the improvement in net income.
Guidance
OGE Energy has once again reaffirmed its 2016 consolidated earnings per share projection at the range of $1.72–$1.83.
OG&E, the regulated utility, also maintained its 2016 earnings projection at the range of $1.44–$1.50 per share.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
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OGE Energy (OGE) Q3 Earnings in Line, '16 Guidance Intact
OGE Energy Corp.(OGE - Free Report) reported third-quarter 2016 earnings of 92 cents per share, in line with the Zacks Consensus Estimate. Reported earnings improved 67.3% year over year, driven by significant contributions from OG&E – a regulated electric utility.
Revenues
OGE Energy’s operating revenues of $743.9 million in third-quarter 2016 rose 3.3% from the prior-year figure of $719.8 million.
Operational Highlights
Total sales in the reported quarter amounted to 8.7 million megawatt-hours (MWh), up from 8.3 million MWh in the prior-year quarter. The upside was driven by higher system and integrated market sales. The company’s customer count increased by 10,638 or 1.3%.
OGE ENERGY CORP Price, Consensus and EPS Surprise
OGE ENERGY CORP Price, Consensus and EPS Surprise | OGE ENERGY CORP Quote
Cost of sales in the reported quarter was $269.8 million, up 3.8%.
Total operating expenses in the quarter under review increased 3.6% year over year to $216.8 million mainly due to higher other operation and maintenance (O&M), and depreciation and amortization expenses. Operating income however increased 2.6% to $257.3 million from the year-ago figure of $250.8 million.
Interest expenses totaled $35.4 million in the reported quarter, down from $37.0 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $183.6 million in this quarter, up 65.1% from the prior-year figure of $111.2 million.
OG&E: OG&E's net income dropped 1.8% year over year to $160 million in the quarter. The decrease was mainly due to higher operating and income tax expenses, partially offset by higher gross margins.
Natural Gas Midstream Operations: The segment posted net income of $23 million in the third quarter, as against a loss of $50 million a year ago. A pre-tax charge of approximately $108 million incurred during the third quarter of 2015 and lower O&M expenses in the third quarter of 2016 contributed to the improvement in net income.
Guidance
OGE Energy has once again reaffirmed its 2016 consolidated earnings per share projection at the range of $1.72–$1.83.
OG&E, the regulated utility, also maintained its 2016 earnings projection at the range of $1.44–$1.50 per share.
Zacks Rank
OGE Energycurrently carries a Zacks Rank #2 (Buy).You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>