We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is ONE Gas (OGS) Up 3.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ONE Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ONE Gas Q3 Earnings Surpass Estimates, Revenues Miss
ONE Gas, Inc. posted third-quarter 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents by 10.7%.
However, earnings in the third quarter were lower than the year-ago level by 13.9%. Total natural gas sales volumes delivered were 11.6 Bcf in third-quarter 2018, down 2% from the same period last year, adversely impacting year-over-year earnings.
Total Revenues
Total revenues of $238.3 million lagged the Zacks Consensus Estimate of $251 million by 5.1%. Also, the figure declined 3.6% from $247.1 million in the prior-year quarter.
Quarterly Highlights
Total operating expenses in the reported quarter increased 5.2% to $150.8 million from the year-ago quarter, due to increase in operating and maintenance expenses.
In the third quarter, the company served 9,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.
Operating income in the reported quarter was down 19.8% year over year to $36.2 million.
The company incurred interest expenses of $12.4 million, up 7.6% from the year-ago period.
Financial Highlights
On Sep 30, 2018, ONE Gas had cash and cash equivalents of $12.43 million compared with $14.4 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $893.9 million as of Sep 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.
The company’s cash flow from operating activities in the first nine months of 2018 was $436.8 million, up from $302.4 million recorded in the corresponding period of 2017.
Guidance
ONE Gas now expects its 2018 net income in the range of $167-$178 million and earnings per share within $3.15-$3.35. The guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.
The company now expects its 2018 capital expenditure in the range of $375-$390 million, with 70% of it directed toward system integrity and replacement projects.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, ONE Gas has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, ONE Gas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is ONE Gas (OGS) Up 3.1% Since Last Earnings Report?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ONE Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ONE Gas Q3 Earnings Surpass Estimates, Revenues Miss
ONE Gas, Inc. posted third-quarter 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents by 10.7%.
However, earnings in the third quarter were lower than the year-ago level by 13.9%. Total natural gas sales volumes delivered were 11.6 Bcf in third-quarter 2018, down 2% from the same period last year, adversely impacting year-over-year earnings.
Total Revenues
Total revenues of $238.3 million lagged the Zacks Consensus Estimate of $251 million by 5.1%. Also, the figure declined 3.6% from $247.1 million in the prior-year quarter.
Quarterly Highlights
Total operating expenses in the reported quarter increased 5.2% to $150.8 million from the year-ago quarter, due to increase in operating and maintenance expenses.
In the third quarter, the company served 9,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.
Operating income in the reported quarter was down 19.8% year over year to $36.2 million.
The company incurred interest expenses of $12.4 million, up 7.6% from the year-ago period.
Financial Highlights
On Sep 30, 2018, ONE Gas had cash and cash equivalents of $12.43 million compared with $14.4 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $893.9 million as of Sep 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.
The company’s cash flow from operating activities in the first nine months of 2018 was $436.8 million, up from $302.4 million recorded in the corresponding period of 2017.
Guidance
ONE Gas now expects its 2018 net income in the range of $167-$178 million and earnings per share within $3.15-$3.35. The guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.
The company now expects its 2018 capital expenditure in the range of $375-$390 million, with 70% of it directed toward system integrity and replacement projects.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, ONE Gas has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, ONE Gas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.