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.
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.
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.
OGE Energy reaffirmed its consolidated earnings guidance for 2018 in the range of $1.90-$2.05 per share.
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%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>