Why Is OGE Energy (OGE) Up 1.9% Since Last Earnings Report?

A month has gone by since the last earnings report for OGE Energy (OGE). Shares have added about 1.9% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is OGE Energy due for a pullback? 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 catalysts. OGE Energy’s Q3 Earnings Lag Estimates, Revenues Increase Y/YOGE Energy reported third-quarter 2024 earnings of $1.09 per share, which lagged the Zacks Consensus Estimate of $1.12 by 2.7%. The figure also decreased 9.2% from earnings of $1.20 per share in the year-ago quarter.OGE Energy’s RevenuesOGE’s operating revenues of $965.4 million rose 2.1% from $945.4 million recorded in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1.12 billion by 13.4%.OGE’s Operational HighlightsTotal sales were 9.7 million megawatt-hours (MWh), up from 9.3 million MWh in the prior-year quarter. The company’s customer count increased 1.2% to 904,900.During the third quarter, the cost of fuel, purchased power and direct transmission increased 4.9% to $350.1 million.Total operating expenses rose 7.7% to $302.1 million, due to higher depreciation and amortization expenses, other operation and maintenance expenses as well as taxes other than income.Operating income totaled $313.2 million in the third quarter, down 5.4% from the year-ago quarter’s level of $331.1 million.Interest expenses totaled $64.2 million, up 11.8% from the year-ago quarter’s level of $57.4 million.OGE Energy’s Segment DetailsOGE Energy reported third-quarter net income of $218.7 million, down 9.6% from the prior-year quarter’s figure of $241.9 million.TheOG&E segment’s net income amounted to $225 million, down 8.6% from the year-ago period’s $246.1 million.The year-over-year deterioration was on account of higher depreciation and interest expense on a growing asset base, as well as increased operation and maintenance expense and income tax expense.TheOther Operations unit incurred a net loss of $6.3 million, which was wider than the year-ago quarter’s loss of $4.2 million. The deterioration was due to higher interest expense.OGE Energy’s Financial HighlightsOGE had cash and cash equivalents of $9.9 million as of Sept. 30, 2024, compared with $0.2 million as of Dec. 31, 2023.Long-term debt totaled $5.02 billion as of the same date, up from $4.34 billion as of Dec. 31, 2023.During the first nine months of 2024, OGE generated cash from operating activities worth $683.2 million compared with the year-ago figure of $921.3 million.OGE’s 2024 GuidanceOGE Energy updated its 2024 earnings per share (EPS) guidance. The company now expects to generate earnings at the top of its earlier provided range of $2.06-$2.18 per share. The Zacks Consensus Estimate for EPS is pegged at $2.14.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in fresh estimates.The consensus estimate has shifted 5.81% due to these changes.VGM ScoresCurrently, OGE Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, 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.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, OGE Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerOGE Energy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, CenterPoint Energy (CNP), has gained 11.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.CenterPoint reported revenues of $1.86 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $0.31 for the same period compares with $0.40 a year ago.For the current quarter, CenterPoint is expected to post earnings of $0.41 per share, indicating a change of +28.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.2% over the last 30 days.CenterPoint has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OGE Energy Corporation (OGE): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks