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.
ONE Gas (OGS) Down 0.4% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for ONE Gas (OGS - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ONE Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ONE Gas' Q1 Earnings & Revenues Surpass Estimates
ONE Gas, Inc. recorded first-quarter 2019 operating earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.73 by 1.7%.
The reported earnings improved 2.3% year over year driven by new rates, colder-than-normal weather and customer growth.
Total Revenues
The company reported total revenues of $661 million in the first quarter, beating the Zacks Consensus Estimate of $625 million by nearly 5.7%. Also, the figure was ahead of the prior-year revenues of $638.5 million by 3.5%.
Quarterly Highlights
Total operating expenses in the reported quarter increased 6.7% from the year-ago period to $168.3 million, owing to increase in operating and maintenance expenses.
Operating income in the reported quarter declined 2.1% year over year to $168.3 million.
The company incurred interest expenses of $15.8 million, increasing 27.4% from the year-ago period.
Financial Highlights
On Mar 31, 2019, ONE Gas had cash and cash equivalents of $19.6 million compared with $21.3 million at 2018-end.
Long-term debt (excluding current maturities) was $1,285.6 million as of Mar 31, 2019, increasing marginally from the Dec 31, 2018 level of $1,285.5 million.
The company’s cash flow from operating activities in first-quarter 2019 was $122.3 million, decreasing 45.2% from $223.3 million recorded in the prior-year period.
Guidance
ONE Gas reiterated its guidance for 2019 net income in the range of $174-$190 million and earnings per share within $3.27-$3.57. The midpoint of management’s 2019 EPS guidance is $3.42, which is lower than the current Zacks Consensus Estimate of $3.45 per share for the period.
The company now expects 2019 capital expenditure to be $450 million, of which 70% is directed toward system integrity and replacement projects.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, ONE Gas has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
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
ONE Gas (OGS) Down 0.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for ONE Gas (OGS - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ONE Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ONE Gas' Q1 Earnings & Revenues Surpass Estimates
ONE Gas, Inc. recorded first-quarter 2019 operating earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.73 by 1.7%.
The reported earnings improved 2.3% year over year driven by new rates, colder-than-normal weather and customer growth.
Total Revenues
The company reported total revenues of $661 million in the first quarter, beating the Zacks Consensus Estimate of $625 million by nearly 5.7%. Also, the figure was ahead of the prior-year revenues of $638.5 million by 3.5%.
Quarterly Highlights
Total operating expenses in the reported quarter increased 6.7% from the year-ago period to $168.3 million, owing to increase in operating and maintenance expenses.
Operating income in the reported quarter declined 2.1% year over year to $168.3 million.
The company incurred interest expenses of $15.8 million, increasing 27.4% from the year-ago period.
Financial Highlights
On Mar 31, 2019, ONE Gas had cash and cash equivalents of $19.6 million compared with $21.3 million at 2018-end.
Long-term debt (excluding current maturities) was $1,285.6 million as of Mar 31, 2019, increasing marginally from the Dec 31, 2018 level of $1,285.5 million.
The company’s cash flow from operating activities in first-quarter 2019 was $122.3 million, decreasing 45.2% from $223.3 million recorded in the prior-year period.
Guidance
ONE Gas reiterated its guidance for 2019 net income in the range of $174-$190 million and earnings per share within $3.27-$3.57. The midpoint of management’s 2019 EPS guidance is $3.42, which is lower than the current Zacks Consensus Estimate of $3.45 per share for the period.
The company now expects 2019 capital expenditure to be $450 million, of which 70% is directed toward system integrity and replacement projects.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, ONE Gas has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
ONE Gas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.