The 10-second takeaway
For the quarter ended June 30 (Q2), ONEOK whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share improved significantly.
Margins expanded across the board.
ONEOK logged revenue of $2.53 billion. The five analysts polled by S&P Capital IQ looked for revenue of $3.56 billion on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $3.44 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.29 for Q2 were 16% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.6%, 430 basis points better than the prior-year quarter. Operating margin was 9.2%, 290 basis points better than the prior-year quarter. Net margin was 2.4%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.18 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $12.40 billion. The average EPS estimate is $1.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 419 members out of 431 rating the stock outperform, and 12 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give ONEOK a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ONEOK is outperform, with an average price target of $46.90.
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