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OGE Energy (OGE) Q4 Earnings Lag Estimates, Revenues Drop Y/Y
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OGE Energy Corp.’s (OGE - Free Report) fourth-quarter 2019 earnings of 18 cents per share missed the Zacks Consensus Estimate of 29 cents by 38%. Moreover, the reported figure plunged 33.3% from 27 cents in the year-ago quarter. The downturn can be attributed to the asset impairment at Enable Midstream.
For 2019, the company reported earnings of $2.16 per share, which improved 1.9% from $2.12 in the prior year.
Revenues
OGE Energy’s operating revenues of $472.5 million dropped 7.7% from the prior-year quarter’s $511.8 million. The dip in revenues primarily resulted from lower revenues from contracts.
For 2019, the company generated operating revenues of $2,231.6 million, which also declined up 1.7% from the prior year’s $2,270.3 million.
Operational Highlights
Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh) compared with 6.8 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up approximately 1% to 857,754.
Cost of sales summed $161.6 million during the fourth quarter compared with $228.9 million in the prior-year quarter.
Total operating expenses rose 7% year over year to $240.6 million on account of higher operation and maintenance expenses, depreciation and amortization expenses along with higher taxes (other than income).
The company’s operating income grew 21.2% in the fourth quarter to $70.3 million from the year-ago quarter’s $58 million.
Interest expenses totaled $37.8 million in the fourth quarter, in line with the year-ago quarter’s figure.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy reported a net income of $433.6 million in 2019, down from the prior year’s $425.5 million.
OG&E: The segment’s net income rose 6.7% to $350 million in 2019 from $328 million in 2018.
Natural Gas Midstream Operations: The segment posted a net income of $81 million in 2019 compared with $109 million in the previous year.
2020 Guidance
OGE Energy expects 2020 earnings in the range of $2.19-$2.31 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.28, toward the high end of the company’s guidance.
Zacks Rank
OGE Energy carries a Zacks Rank #4 (Sell).
Recent Utility Releases
CMS Energy (CMS - Free Report) , a Zacks Rank #3 (Hold) company, reported fourth-quarter 2019 adjusted earnings per share of 68 cents, considerably up 70% from the year-ago quarter’s 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 company, posted adjusted earnings of $1.44 per share for the December-end quarter, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Dominion Energy (D - Free Report) , a Zacks Rank #3 company, delivered operating earnings of $1.18 per share for the final quarter of 2019, beating the Zacks Consensus Estimate of $1.16 by 1.7%.
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OGE Energy (OGE) Q4 Earnings Lag Estimates, Revenues Drop Y/Y
OGE Energy Corp.’s (OGE - Free Report) fourth-quarter 2019 earnings of 18 cents per share missed the Zacks Consensus Estimate of 29 cents by 38%. Moreover, the reported figure plunged 33.3% from 27 cents in the year-ago quarter. The downturn can be attributed to the asset impairment at Enable Midstream.
For 2019, the company reported earnings of $2.16 per share, which improved 1.9% from $2.12 in the prior year.
Revenues
OGE Energy’s operating revenues of $472.5 million dropped 7.7% from the prior-year quarter’s $511.8 million. The dip in revenues primarily resulted from lower revenues from contracts.
For 2019, the company generated operating revenues of $2,231.6 million, which also declined up 1.7% from the prior year’s $2,270.3 million.
Operational Highlights
Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh) compared with 6.8 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up approximately 1% to 857,754.
Cost of sales summed $161.6 million during the fourth quarter compared with $228.9 million in the prior-year quarter.
Total operating expenses rose 7% year over year to $240.6 million on account of higher operation and maintenance expenses, depreciation and amortization expenses along with higher taxes (other than income).
The company’s operating income grew 21.2% in the fourth quarter to $70.3 million from the year-ago quarter’s $58 million.
Interest expenses totaled $37.8 million in the fourth quarter, in line with the year-ago quarter’s figure.
OGE Energy Corporation Price, Consensus and EPS Surprise
OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote
Other Highlights of the Release
OGE Energy reported a net income of $433.6 million in 2019, down from the prior year’s $425.5 million.
OG&E: The segment’s net income rose 6.7% to $350 million in 2019 from $328 million in 2018.
Natural Gas Midstream Operations: The segment posted a net income of $81 million in 2019 compared with $109 million in the previous year.
2020 Guidance
OGE Energy expects 2020 earnings in the range of $2.19-$2.31 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.28, toward the high end of the company’s guidance.
Zacks Rank
OGE Energy carries a Zacks Rank #4 (Sell).
Recent Utility Releases
CMS Energy (CMS - Free Report) , a Zacks Rank #3 (Hold) company, reported fourth-quarter 2019 adjusted earnings per share of 68 cents, considerably up 70% from the year-ago quarter’s 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) , a Zacks Rank #3 company, posted adjusted earnings of $1.44 per share for the December-end quarter, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Dominion Energy (D - Free Report) , a Zacks Rank #3 company, delivered operating earnings of $1.18 per share for the final quarter of 2019, beating the Zacks Consensus Estimate of $1.16 by 1.7%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>