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ONE Gas (OGS) Up 5.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 5.1% in that time frame, underperforming 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 Q2 Earnings Miss Estimates, Revenues Down Y/Y
ONE Gas, Inc. reported second-quarter 2024 operating earnings per share (EPS) of 48 cents, which lagged the Zacks Consensus Estimate of 49 cents by 2%. The figure was also 17.2% lower than the year-ago quarter’s earnings of 58 cents per share.
Total Revenues
ONE Gas recorded revenues of $354 million, which missed the Zacks Consensus Estimate of $417 million by 15.1%. The top line also decreased 11.1% from $398 million reported in the prior-year quarter.
Highlights of the Release
Total natural gas volumes delivered were 68.2 billion cubic feet, down 4.9% on a year-over-year basis. OGS served 2,284,000 customers, up 0.7% year over year.
Total operating expenses were $212.8 million, up 4.4% year over year. The upside was due to a rise in operations and maintenance, and depreciation and amortization expenses.
Operating income increased 8.4% year over year to $69.4 million.
OGS incurred net interest expenses of $37 million, up 34.5% on a year-over-year basis.
Financial Highlights
As of Jun 30, OGS had cash and cash equivalents of $10.7 million compared with $18.8 million as of Dec 31, 2023.
Total long-term debt (excluding current maturities) was $2.15 billion as of Jun 30, compared with $2.16 billion as of Dec 31, 2023.
Cash provided by operating activities in the first six months of 2024 was $250.9 million compared with $748.7 million in the year-ago quarter.
Capital expenditures and asset removal costs were $194.6 million compared with $190.2 million in the year-earlier quarter.
2024 Guidance
Management reaffirmed its financial guidance, with 2024 net income expected to be in the range of $214-$231 million or $3.70-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.85 per share, equal to the mid-point of the company’s guided range.
OGS continues to expect capital expenditures, including asset removal costs, of $750 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, ONE Gas has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ONE Gas is part of the Zacks Utility - Gas Distribution industry. Over the past month, National Fuel Gas (NFG - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
National Fuel Gas reported revenues of $417.44 million in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.99 for the same period compares with $1.01 a year ago.
For the current quarter, National Fuel Gas is expected to post earnings of $0.92 per share, indicating a change of +18% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
National Fuel Gas has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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ONE Gas (OGS) Up 5.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 5.1% in that time frame, underperforming 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 Q2 Earnings Miss Estimates, Revenues Down Y/Y
ONE Gas, Inc. reported second-quarter 2024 operating earnings per share (EPS) of 48 cents, which lagged the Zacks Consensus Estimate of 49 cents by 2%. The figure was also 17.2% lower than the year-ago quarter’s earnings of 58 cents per share.
Total Revenues
ONE Gas recorded revenues of $354 million, which missed the Zacks Consensus Estimate of $417 million by 15.1%. The top line also decreased 11.1% from $398 million reported in the prior-year quarter.
Highlights of the Release
Total natural gas volumes delivered were 68.2 billion cubic feet, down 4.9% on a year-over-year basis. OGS served 2,284,000 customers, up 0.7% year over year.
Total operating expenses were $212.8 million, up 4.4% year over year. The upside was due to a rise in operations and maintenance, and depreciation and amortization expenses.
Operating income increased 8.4% year over year to $69.4 million.
OGS incurred net interest expenses of $37 million, up 34.5% on a year-over-year basis.
Financial Highlights
As of Jun 30, OGS had cash and cash equivalents of $10.7 million compared with $18.8 million as of Dec 31, 2023.
Total long-term debt (excluding current maturities) was $2.15 billion as of Jun 30, compared with $2.16 billion as of Dec 31, 2023.
Cash provided by operating activities in the first six months of 2024 was $250.9 million compared with $748.7 million in the year-ago quarter.
Capital expenditures and asset removal costs were $194.6 million compared with $190.2 million in the year-earlier quarter.
2024 Guidance
Management reaffirmed its financial guidance, with 2024 net income expected to be in the range of $214-$231 million or $3.70-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.85 per share, equal to the mid-point of the company’s guided range.
OGS continues to expect capital expenditures, including asset removal costs, of $750 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, ONE Gas has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ONE Gas is part of the Zacks Utility - Gas Distribution industry. Over the past month, National Fuel Gas (NFG - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
National Fuel Gas reported revenues of $417.44 million in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.99 for the same period compares with $1.01 a year ago.
For the current quarter, National Fuel Gas is expected to post earnings of $0.92 per share, indicating a change of +18% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
National Fuel Gas has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.