OGE Energy Corp. reports results for the quarter ended September 30 - Earnings Summary

What happened

OGE Energy Corp. reported adjusted earnings of $1.52 per share for the quarter ended September 30, above the $1.14 from a year earlier and the $1.36 analysts expected. Revenue rose 13.2% to $1.18 billion, and quarterly net income was $316.2 million.

Confirmed

Global impact / market context

Higher earnings and revenue than analysts expected show the utility earned more per share and brought in more money than Wall Street forecast, which can support the share price and may make future profit estimates look more achievable to investors.

Analyst inference

Analysts had raised their average earnings estimate about 13.6% over three months with no negative revisions in the last 30 days. The average rating is buy, but the $48.50 median price target sits slightly below the $48.91 last close.

Analyst inference

What to watch

1. The average analyst rating is buy, split into 6 strong buy or buy and 8 hold, with no sell ratings, which shows most tracked analysts still lean positive on the stock. Confirmed
2. Watch whether analysts raise their 12-month price targets after the earnings beat, since the current $48.50 median target sits about 0.8% below the last closing price of $48.91. Proposed
3. Watch whether the 13.2% revenue growth and higher earnings hold in coming quarters, because utility profit and revenue can shift with weather, customer demand and costs. Analyst inference

Evidence

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