Williams Companies Delivers Strong Performance with Positive Q3 Results
The Williams Companies, Inc. (WMB), based in Tulsa, Oklahoma, is a key player in North America’s energy infrastructure sector. With a market cap of $69.2 billion, the company specializes in transportation solutions for natural gas, providing essential services such as gathering, processing, and transportation.
Impressive Stock Gains Outshine Market Trends
Over the past year, Williams Companies’ stock has notably outperformed the broader market. The stock has gained 62.7% during this period, whereas the S&P 500 Index ($SPX) has increased nearly 35.5%. In 2024, WMB stock continues its upward momentum with a rise of 62.9%, exceeding SPX’s 25.5% increase year-to-date.
Comparative Performance Against Energy Sector ETFs
When compared to the Energy Select Sector SPDR Fund (XLE), Williams Companies’ gains shine even brighter. The ETF has only gained 12.4% over the past year. On a year-to-date basis, WMB also leads with returns outpacing the ETF’s 11.9% performance.
Strong Q3 Results Reflect Company Growth
Shares of Williams Companies surged over 4% following the release of its Q3 results on November 6. The company reported adjusted earnings per share (EPS) of $0.43, surpassing the consensus estimate of $0.42. Revenue for the quarter reached $2.65 billion, representing a 3.7% year-over-year increase and aligning with analyst projections.
Additionally, Williams achieved a record Q3 adjusted EBITDA of $1.7 billion, up by 3%. This growth was driven by increased natural gas transmission and new acquisitions, including Gulf Coast storage facilities. Importantly, Williams raised its full-year 2024 adjusted EBITDA guidance by $125 million, setting a midpoint of $7.1 billion.
Analysts Optimistic About Future Earnings
For the current fiscal year ending in December, analysts forecast that Williams Companies’ EPS will grow by 5.2% to $2.01 on a diluted basis. The company has a solid track record, having beaten consensus estimates in each of the last four quarters.
Among the 20 analysts tracking WMB stock, the consensus rating stands at “Moderate Buy.” This rating consists of nine “Strong Buy” recommendations, two “Moderate Buy” ratings, eight “Hold” suggestions, and one “Strong Sell.”
Analyst Opinions and Future Price Targets
This outlook appears to be more positive than three months prior when only eight analysts endorsed a “Strong Buy.” Gabe Moreen from Mizuho Securities reaffirmed a “Buy” rating on Williams Companies on November 7.
Despite the fact that WMB is currently trading above the average price target of $52.05, the highest target of $61 suggests a potential upside of 7.5%.
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On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
