Latest news with #OGEEnergyCorp
Yahoo
07-05-2025
- Business
- Yahoo
Investors in OGE Energy (NYSE:OGE) have seen notable returns of 90% over the past five years
If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. But OGE Energy Corp. (NYSE:OGE) has fallen short of that second goal, with a share price rise of 51% over five years, which is below the market return. However, more recent buyers should be happy with the increase of 26% over the last year. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Our free stock report includes 2 warning signs investors should be aware of before investing in OGE Energy. Read for free now. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, OGE Energy moved from a loss to profitability. That would generally be considered a positive, so we'd hope to see the share price to rise. You can see below how EPS has changed over time (discover the exact values by clicking on the image). NYSE:OGE Earnings Per Share Growth May 7th 2025 We know that OGE Energy has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, OGE Energy's TSR for the last 5 years was 90%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective It's good to see that OGE Energy has rewarded shareholders with a total shareholder return of 31% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 14% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand OGE Energy better, we need to consider many other factors. For instance, we've identified 2 warning signs for OGE Energy (1 makes us a bit uncomfortable) that you should be aware of.
Yahoo
01-05-2025
- Business
- Yahoo
OGE Energy Corp (OGE) Q1 2025 Earnings Call Highlights: Strong Growth Amidst Challenges
Consolidated Earnings: $0.31 per diluted share, including $0.35 for OG&E and a holding company loss of $0.04. Consolidated Net Income: $63 million compared to $19 million in the same period of 2024. Electric Company Net Income: $71 million or $0.35 per diluted share compared to $25 million or $0.12 per share in the same period of 2024. Customer Growth: 1% increase compared to the first quarter of 2024. Load Growth: 8% increase compared to the first quarter of 2024, with residential and commercial sectors growing at 3% and 28%, respectively. Operating Revenues: Increase driven by recovery of capital investments and strong growth. Expenses: Lower operation and maintenance expense, offset by higher income tax, depreciation, and interest expense. External Financing: Issued $350 million of 30-year debt at the electric company. Earnings Per Share Guidance: Affirmed at $2.27 within a range of $2.21 to $2.33 per share for 2025. Warning! GuruFocus has detected 10 Warning Signs with OGE. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OGE Energy Corp (NYSE:OGE) reported strong consolidated earnings of $0.31 per diluted share, showing significant improvement from the previous year. The company experienced an 8% year-over-year increase in demand, driven by residential and commercial sectors. OGE Energy Corp (NYSE:OGE) maintains high reliability with a 99.975% reliability rate despite severe weather conditions. The company has secured key components like transformers, wire, and cable through 2026, ensuring minimal disruption to planned projects. OGE Energy Corp (NYSE:OGE) has a strong financial position with a high-quality balance sheet and no need for external equity issuances beyond a modest annual drip. The holding company reported a loss of $8 million or $0.04 per diluted share, slightly higher than the previous year's loss. There was some softness in the industrial and oil field customer classes due to planned and unplanned outages. Moody's has placed OGE Energy Corp (NYSE:OGE) on a negative outlook, with concerns about maintaining the current credit rating. The company faces potential regulatory challenges and uncertainties in tariff policies that could impact future operations. OGE Energy Corp (NYSE:OGE) is targeting an FFO to debt ratio of 17%, which is below the downgrade threshold of 18% set by Moody's. Q: Are you seeing any disruptive or inflationary impact on tariffs, especially related to new generation and the RFP? Do you have regulatory mechanisms to address any tariff headwinds across the current CapEx plan? A: Sean Trauschke, CEO: We feel confident about our current CapEx plan, with a clear line of sight to materials and assets, expecting little to no disruption. The announcement of tariffs caused a pause in the marketplace, but we are not overly concerned about regulatory actions as we have not filed anything yet. Q: The industrial segment showed lower growth compared to strong residential and commercial growth. Are there any key changes on the industrial side? A: Charles Walworth, CFO: The lower growth in the industrial segment is due to transitory events like maintenance outages. We don't see any external factors impacting this class and remain confident in our annual growth expectations. Q: Are there any conversations in Oklahoma about utility regulatory construct improvements, such as a formula rate? A: Sean Trauschke, CEO: We are pursuing discussions on formula rates, but it will take time. We don't expect changes this year but will continue to push for improvements in the future. Q: How would the generation rider and Pisa recovery impact your current plan and financing for incremental CapEx? A: Charles Walworth, CFO: The generation rider would provide cash flow during the construction phase, offering a cash return on the CWIP balance. This would marginally improve credit and facilitate financing for incremental CapEx. Q: Are you seeing any pullback in data center electricity demand, given the recent pullbacks by companies like Microsoft and Amazon? A: Sean Trauschke, CEO: We have ongoing discussions with about half a dozen data center projects, and there is no slowdown in demand. The interest remains strong. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
