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OGE Energy (OGE) Q2 Earnings Lag Estimates, Revenues Rise Y/Y

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OGE Energy Corp. (OGE - Free Report) reported second-quarter 2024 earnings of 51 cents per share, which lagged the Zacks Consensus Estimate of 69 cents by 26.1%. The figure increased 15.9% from earnings of 44 cents per share in the year-ago quarter.

Revenues

OGE’s operating revenues of $662.6 million rose 9.5% from $605 million recorded in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $837.5 million by 20.9%.

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote

Operational Highlights

Total sales were 8 million megawatt-hours (MWh), up from 7.3 million MWh in the prior-year quarter. The company’s customer count increased 1.2% to 902,303.

During the second quarter, the cost of fuel, purchased power and direct transmission increased 6.7% to $193.9 million.

Total operating expenses rose 5.8% to $292.8 million, due to higher depreciation and amortization expenses, other operation and maintenance expenses as well as taxes other than income.

Operating income totaled $175.9 million in the second quarter, up 20.2% from the year-ago quarter’s level of $146.4 million.

Interest expenses totaled $64.9 million, up 12.5% from the year-ago quarter’s level of $57.7 million.

Segment Details

OGE Energy reported second-quarter net income of $102.3 million, up 15.7% from the prior-year quarter’s figure of $88.4 million.

The OG&E segment’s net income amounted to $109.3 million, up 18.9% from the year-ago period’s $91.9 million. The year-over-year upside was driven by warmer-than-normal weather and excellent load growth.

Financial Highlights

OGE had cash and cash equivalents of $0.1 million as of Jun 30, 2024, compared with $0.2 million as of Dec 31, 2023.

Long-term debt totaled $4.82 billion as of Jun 30, up from $4.34 billion as of Dec 31, 2023.

During the first six months of 2024, OGE generated cash from operating activities worth $336.1 million compared with the year-ago figure of $506.2 million.

2024 Guidance

OGE Energy reiterated its 2024 earnings per share (EPS) guidance. The company still expects to generate earnings in the range of $2.06-$2.18 per share. The Zacks Consensus Estimate for EPS is pegged at $2.13, which lies just above the midpoint of the company’s guided range.

Zacks Rank

OGE Energy currently 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

Dominion Energy, Inc. (D - Free Report) reported second-quarter EPS of 55 cents, which lagged the Zacks Consensus Estimate of 58 cents by 5.2%. The figure increased 3.8% from earnings of 53 cents per share in the prior-year quarter.

The consensus estimate for Dominion’s 2024 EPS is pegged at $2.75, implying an improvement of 38.2% from the year-earlier level.

IDACORP, Inc. (IDA - Free Report) reported second-quarter EPS of $1.71, which beat the Zacks Consensus Estimate of $1.37 by 24.8%. The figure increased 26.7% from earnings of $1.35 per share in the prior-year quarter.

The consensus estimate for IDA’s 2024 EPS is pegged at $5.37, implying an improvement of 4.5% from the year-earlier level.

FirstEnergy Corporation (FE - Free Report) reported second-quarter EPS of 56 cents, which met the Zacks Consensus Estimate of 56 cents. The figure increased 19.2% from earnings of 47 cents per share in the prior-year quarter.

The consensus estimate for FE’s 2024 EPS is pegged at $2.70, implying an improvement of 5.5% from the year-earlier level.

 

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