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OGE Energy's (OGE) Q1 Earnings Beat Estimates, Sales Up Y/Y

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OGE Energy Corp. (OGE - Free Report) reported first-quarter 2018 adjusted earnings of 27 cents per share, beating the Zacks Consensus Estimate of 17 cents by 58.8%. Earnings also improved 50% from 18 cents in the year-ago quarter.

Revenues

OGE Energy’s operating revenues of $492.7 million were up 8% from the prior-year quarter’s figure of $456 million. The top line improved on the back of 5.1% increase in residential revenues. 

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation Price, Consensus and EPS Surprise | OGE Energy Corporation Quote

Operational Highlights

Total sales in the reported quarter amounted to 6.8 million megawatt-hours (MWh), up from 6.2 million MWh in the prior-year quarter. The upside can be attributed to higher system sales, which increased 10.2% year over year. Meanwhile, the company’s customer count inched up by 0.9% to 843,322.

Cost of sales in the quarter under review was $210.5 million, compared with $208.7 in the prior-year quarter.

Total operating expenses rose 10% year over year to $221.7 million on account of higher depreciation and amortization expenses as well as higher taxes (other than income). Operating income increased 32.4% to $60.5 million from the year-ago quarter’s figure of $45.7 million.

Interest expenses totaled $38.6 million in the quarter, up from $35 million in the year-ago quarter.

Other Highlights of the Release

OGE Energy reported net income of $55 million as of Mar 31, 2018, up from the prior-year quarter’s figure of $36 million.

OG&E: The segment’s net income surged 94% year over year to $31 million in the first quarter. The upside was driven by lower operation and maintenance expense, a favorable weather as well as new rates implemented in May 2017.

Natural Gas Midstream Operations: The segment posted net income of $24 million in the reported quarter compared with $20 million in the year-ago quarter. The upside was mainly led by lower income tax expense.

Guidance

OGE Energy reaffirmed its consolidated earnings guidance for 2018 in the range of $1.90-$2.05 per share.

Zacks Rank

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

Other Utility Releases

FirstEnergy Corp. (FE - Free Report) reported first-quarter 2018 operating earnings of 67 cents per share, which lagged the Zacks Consensus Estimate of 68 cents by 1.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2018 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.78 by 8.9%.

PG&E Corporation (PCG - Free Report) reported adjusted operating earnings per share of 91 cents in first-quarter 2018, which missed the Zacks Consensus Estimate of $1.03 by 11.7%.

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