Earnings Miss: OGE Energy Corp. Missed EPS By 7.1% And Analysts Are Revising Their Forecasts

OGE Energy Corp. (NYSE:OGE) just released its latest quarterly report and things are not looking great. OGE Energy missed analyst forecasts, with revenues of US$965m and statutory earnings per share (EPS) of US$1.09, falling short by 5.0% and 7.1% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for OGE Energy

Taking into account the latest results, the current consensus from OGE Energy's nine analysts is for revenues of US$3.00b in 2025. This would reflect a credible 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 18% to US$2.28. Before this earnings report, the analysts had been forecasting revenues of US$3.00b and earnings per share (EPS) of US$2.28 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$40.90. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values OGE Energy at US$46.00 per share, while the most bearish prices it at US$35.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting OGE Energy is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting OGE Energy's growth to accelerate, with the forecast 5.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that OGE Energy is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for OGE Energy going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - OGE Energy has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.