ONEOK Set to Announce Q4 Earnings Amid Positive Growth Trends

With a market cap of $64.2 billion, ONEOK, Inc. (OKE) stands as a prominent player in the energy sector, focusing on gathering, processing, storing, transporting, and marketing natural gas and natural gas liquids (NGL) throughout the United States. Headquartered in Tulsa, Oklahoma, the company services a wide array of customers through its comprehensive midstream infrastructure and operations. The company is scheduled to release its fiscal Q4 earnings results on Monday, Feb. 24.

Expectations for Earnings Report

Analysts predict that OKE will report a profit of $1.46 per share, reflecting a 23.7% increase from $1.18 per share in the same quarter last year. While OKE has surpassed Wall Street’s earnings expectations in one out of the last four quarters, it has fallen short on three occasions. In its most recent quarter, the company missed the consensus EPS estimate by 4.1%.

Future Earnings Projections

For fiscal 2024, analysts forecast that OKE’s EPS will be $5.10, which represents a 6.9% decline compared to $5.48 in fiscal 2023. However, a recovery is expected in fiscal 2025, with EPS projected to rebound by 17.8%, reaching $6.01.

Stock Performance Overview

Over the past 52 weeks, shares of ONEOK have performed exceptionally well, surging 54.4%, compared to a 25.7% rise in the broader S&P 500 Index ($SPX) and a 15.5% increase in the Energy Select Sector SPDR Fund (XLE).

Recent Financial Highlights

Although OKE reported weaker-than-expected Q3 earnings, posting an EPS of $1.18 and revenue of $5 billion on Oct. 29, its stock experienced only a slight decline due to strong year-over-year growth. Adjusted EBITDA climbed 52.2% to $1.6 billion, while operating income increased 52.7% to $1.1 billion, showcasing notable operational improvements. The company has also raised its outlook for 2024 net income to between $2.9 billion and $3.1 billion, along with adjusted EBITDA guidance of $6.5 billion to $6.7 billion.

Analyst Ratings and Market Position

Analysts maintain a moderately optimistic consensus view on OKE stock, currently rated as a “Moderate Buy.” Among 17 analysts covering the stock, nine recommend a “Strong Buy,” two suggest “Moderate Buy,” and six propose a “Hold” rating. This reflects a slightly more bullish sentiment than three months prior, when eight analysts advocated for a “Strong Buy.”

At present, OKE is trading below the average analyst price target of $111.93.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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