The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ONEOK whiffed on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
ONEOK tallied revenue of $4.07 billion. The three analysts polled by S&P Capital IQ expected to see revenue of $4.75 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $3.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.08. The nine earnings estimates compiled by S&P Capital IQ forecast $1.05 per share on the same basis. GAAP EPS of $1.09 for Q4 were 43% higher than the prior-year quarter's $0.76 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 11.3%, 120 basis points better than the prior-year quarter. Operating margin was 9.0%, 190 basis points better than the prior-year quarter. Net margin was 2.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.92 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $16.81 billion. The average EPS estimate is $3.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 402 members out of 416 rating the stock outperform, and 14 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 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 hold, with an average price target of $77.14.
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