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OGE Energy (OGE) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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OGE Energy Corp.’s (OGE - Free Report) fourth-quarter 2018 earnings of 27 cents per share surpassed the Zacks Consensus Estimate of 24 cents by 12.5%. However, the reported figure plunged 81.8% from $1.48 registered in the year-ago quarter. The downturn can be attributed to lower earnings from the utility business.
For 2018, the company reported earnings of $2.12 per share, which outpaced the Zacks Consensus Estimate of $2.08 by 1.9%. However, the bottom line declined 31.6% from $3.10 registered in the prior year.
Revenues
OGE Energy’s operating revenues of $511.8 million rose 2% from the prior-year quarter’s $501.9 million. The upside was primarily driven by year-over-year higher residential, industrial, oilfield and integrated market revenues.
For 2018, the company generated operating revenues of $2.27 billion, which inched up 0.4% from the prior-year figure of $2.26 billion.
OGE Energy Corporation Price, Consensus and EPS Surprise
Total sales in the reported quarter amounted to 6.8 million megawatt-hours (MWh), almost in line with 6.7 million MWh in the prior-year quarter. Higher system sales were offset by lower integrated market sales. Meanwhile, the company’s customer count inched up 0.9% to 849,372.
Cost of sales summed $228.9 million compared with $201.1 million in the prior-year quarter.
Total operating expenses rose 4.6% year over year to $224.9 million on account of higher operation and maintenance expenses, depreciation and amortization expenses as well as higher taxes (other than income).
Consequently, operating income decreased 32.3% to $58 million from the year-ago quarter’s $85.7 million.
Interest expenses totaled $37.8 million in the fourth quarter, up from $35.8 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $425.5 million in 2018, down from the prior-year figure of $619 million.
OG&E: The segment’s net income rose 7.2% to $328 million in 2018, from $306 million in 2017.
Natural Gas Midstream Operations: The segment posted net income of $109 million compared with $324 million in the prior year.
2019 Guidance
OGE Energy expects its earnings for 2019 to lie in the range of $2.05-$2.20 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $2.19, near the high end of the company’s guided range.
Entergy Corporation (ETR - Free Report) reported fourth-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 25%.
Ameren Corporation’s (AEE - Free Report) fourth-quarter 2018 earnings of 28 cents per share from continuing operations missed the Zacks Consensus Estimate of 32 cents by 12.5%.
American Electric Power Co. (AEP - Free Report) reported fourth-quarter 2018 operating earnings of 72 cents per share, in line with the Zacks Consensus Estimate.
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OGE Energy (OGE) Q4 Earnings Beat Estimates, Revenues Up Y/Y
OGE Energy Corp.’s (OGE - Free Report) fourth-quarter 2018 earnings of 27 cents per share surpassed the Zacks Consensus Estimate of 24 cents by 12.5%. However, the reported figure plunged 81.8% from $1.48 registered in the year-ago quarter. The downturn can be attributed to lower earnings from the utility business.
For 2018, the company reported earnings of $2.12 per share, which outpaced the Zacks Consensus Estimate of $2.08 by 1.9%. However, the bottom line declined 31.6% from $3.10 registered in the prior year.
Revenues
OGE Energy’s operating revenues of $511.8 million rose 2% from the prior-year quarter’s $501.9 million. The upside was primarily driven by year-over-year higher residential, industrial, oilfield and integrated market revenues.
For 2018, the company generated operating revenues of $2.27 billion, which inched up 0.4% from the prior-year figure of $2.26 billion.
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), almost in line with 6.7 million MWh in the prior-year quarter. Higher system sales were offset by lower integrated market sales. Meanwhile, the company’s customer count inched up 0.9% to 849,372.
Cost of sales summed $228.9 million compared with $201.1 million in the prior-year quarter.
Total operating expenses rose 4.6% year over year to $224.9 million on account of higher operation and maintenance expenses, depreciation and amortization expenses as well as higher taxes (other than income).
Consequently, operating income decreased 32.3% to $58 million from the year-ago quarter’s $85.7 million.
Interest expenses totaled $37.8 million in the fourth quarter, up from $35.8 million a year ago.
Other Highlights of the Release
OGE Energy reported net income of $425.5 million in 2018, down from the prior-year figure of $619 million.
OG&E: The segment’s net income rose 7.2% to $328 million in 2018, from $306 million in 2017.
Natural Gas Midstream Operations: The segment posted net income of $109 million compared with $324 million in the prior year.
2019 Guidance
OGE Energy expects its earnings for 2019 to lie in the range of $2.05-$2.20 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $2.19, near the high end of the company’s guided range.
Zacks Rank
OGE Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
Entergy Corporation (ETR - Free Report) reported fourth-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 25%.
Ameren Corporation’s (AEE - Free Report) fourth-quarter 2018 earnings of 28 cents per share from continuing operations missed the Zacks Consensus Estimate of 32 cents by 12.5%.
American Electric Power Co. (AEP - Free Report) reported fourth-quarter 2018 operating earnings of 72 cents per share, in line with the Zacks Consensus Estimate.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>