OGE Energy Corporation (NYSE:OGE) reported fourth quarter earnings per share (EPS) of 35 cents, topping the Zacks Consensus Estimate of 30 cents and the year-ago quarterly EPS of 23 cents. The uptrend was reflected in fiscal 2009 results as well where the EPS of $2.66 comfortably beat the fiscal 2008 EPS of $2.49.
Estimate Revisions Trend
OGE Energy has witnessed a consistent positive streak in earnings surprises over the past four quarters. The average is a positive at 19.89%, reflecting the utility’s stable performance during this period.
Of the six analysts covering the stock in fiscal 2010, one has upped the earnings estimates in the last 7 days and another in the last 30 days. The company expects its fiscal 2010 earnings in the range of $2.70 – $2.95 per share, in line with the Zacks Consensus Estimate of $2.90.
OGE Energy’s operating revenues increased 12.8% to $773.7 million in the reported quarter. Electric Utility revenues increased to $411.3 million compared to $369.9 million in the year-ago quarter. Natural Gas Pipeline revenues increased to $362.4 million from $316.1 million in the year-ago quarter. Fiscal 2009 revenues, however, receded to $2.9 billion from $4.1 billion in fiscal 2008.
For fiscal 2009, OGE Energy reported a consolidated gross margin of $1.31 billion compared with $1.25 billion in fiscal 2008. Operating income was $492 million compared with $462 million in fiscal 2008. Net income was $258 million compared with $231 million in fiscal 2008.
OG&E reported a gross margin of $955 million in 2009, compared with $845 million in 2008. OG&E's earnings of $2.06 per share in 2009 compares well against $1.54 in 2008. Earnings were primarily driven by a rate relief during 2009 and regulatory recoveries for utility investments, but were partially offset by a milder weather in 2009.
Enogex reported a gross margin of $360 million in 2009, compared to $393 million in 2008. Earnings at Enogex of 68 cents per share in 2009 compares unfavorably with 98 cents in 2008. Lower commodity prices for most of 2009 were the primary factor, which was partially offset by higher volumes of gathered gas, processed liquids and leased transportation capacity.
The holding company contributed a loss of 8 cents per share to OGE Energy's consolidated results in 2009, compared with a loss of 3 cents in 2008. The loss primarily resulted from lower margins in the marketing business and a decrease in revenue from certain transportation contracts.