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Why Is ONE Gas (OGS) Up 7.7% Since Last Earnings Report?
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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 7.7% in that time frame, outperforming 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 catalysts.
ONE Gas Q3 Earnings Lag Estimates, Revenues Rise Y/Y
ONE Gas, Inc. reported third-quarter 2024 operating earnings per share (EPS) of 34 cents, which lagged the Zacks Consensus Estimate of 41 cents by 17.1%. The figure also came in 24.4% lower than the year-ago quarter’s earnings of 45 cents per share.
OGS’ Revenues
ONE Gas recorded revenues of $340.4 million, which missed the Zacks Consensus Estimate of $363 million by 6.3%. However, the top line increased 1.4% from $335.8 million in the prior-year quarter.
Highlights of the Release
Total natural gas volumes delivered were 59.8 billion cubic feet, down 6.9% on a year-over-year basis. OGS served 2,272,000 customers, up 0.9% year over year.
Total operating expenses were $221.3 million, up 6.6% year over year. The upside was due to a rise in operations and maintenance, and depreciation and amortization expenses.
Operating income increased 3.9% year over year to $59.4 million.
OGS incurred net interest expenses of $39.1 million, up 40% on a year-over-year basis.
OGS’ Financial Highlights
As of Sept. 30, OGS had cash and cash equivalents of $18.8 million compared with $18.84 million as of Dec. 31, 2023.
Total long-term debt (excluding current maturities) was $2.38 billion as of Sept. 30, compared with $2.16 billion as of Dec 31. 2023.
Cash provided by operating activities in the first nine months of 2024 was $305.8 million compared with $842.5 million in the year-ago quarter.
Capital expenditures and asset removal costs were $197.7 million compared with $184.3 million in the year-earlier quarter.
OGS’ 2024 Guidance
Management raised and narrowed its financial guidance, with 2024 net income expected in the range of $219-$226 million compared with the previous range of $214-$231. Earnings per diluted share are expected in the range of $3.85-$3.95 per share compared with the previous range of $3.70-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, lower than 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 revision.
VGM Scores
At this time, ONE Gas has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, 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.
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Why Is ONE Gas (OGS) Up 7.7% Since Last Earnings Report?
It has been about a month since the last earnings report for ONE Gas (OGS - Free Report) . Shares have added about 7.7% in that time frame, outperforming 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 catalysts.
ONE Gas Q3 Earnings Lag Estimates, Revenues Rise Y/Y
ONE Gas, Inc. reported third-quarter 2024 operating earnings per share (EPS) of 34 cents, which lagged the Zacks Consensus Estimate of 41 cents by 17.1%. The figure also came in 24.4% lower than the year-ago quarter’s earnings of 45 cents per share.
OGS’ Revenues
ONE Gas recorded revenues of $340.4 million, which missed the Zacks Consensus Estimate of $363 million by 6.3%. However, the top line increased 1.4% from $335.8 million in the prior-year quarter.
Highlights of the Release
Total natural gas volumes delivered were 59.8 billion cubic feet, down 6.9% on a year-over-year basis. OGS served 2,272,000 customers, up 0.9% year over year.
Total operating expenses were $221.3 million, up 6.6% year over year. The upside was due to a rise in operations and maintenance, and depreciation and amortization expenses.
Operating income increased 3.9% year over year to $59.4 million.
OGS incurred net interest expenses of $39.1 million, up 40% on a year-over-year basis.
OGS’ Financial Highlights
As of Sept. 30, OGS had cash and cash equivalents of $18.8 million compared with $18.84 million as of Dec. 31, 2023.
Total long-term debt (excluding current maturities) was $2.38 billion as of Sept. 30, compared with $2.16 billion as of Dec 31. 2023.
Cash provided by operating activities in the first nine months of 2024 was $305.8 million compared with $842.5 million in the year-ago quarter.
Capital expenditures and asset removal costs were $197.7 million compared with $184.3 million in the year-earlier quarter.
OGS’ 2024 Guidance
Management raised and narrowed its financial guidance, with 2024 net income expected in the range of $219-$226 million compared with the previous range of $214-$231. Earnings per diluted share are expected in the range of $3.85-$3.95 per share compared with the previous range of $3.70-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, lower than 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 revision.
VGM Scores
At this time, ONE Gas has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, 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.