The 10-second takeaway
For the quarter ended March 31 (Q1), ONEOK whiffed on revenue and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted slightly.
Margins increased across the board.
ONEOK booked revenue of $3.41 billion. The five analysts polled by S&P Capital IQ expected a top line of $4.76 billion on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $3.76 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 $1.16. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.34 per share. GAAP EPS of $1.16 for Q1 were 2.5% lower than the prior-year quarter's $1.19 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.2%, 160 basis points better than the prior-year quarter. Operating margin was 9.8%, 110 basis points better than the prior-year quarter. Net margin was 3.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.80 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $14.22 billion. The average EPS estimate is $3.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 413 members out of 425 rating the stock outperform, and 12 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give ONEOK a green thumbs-up, and five 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 $86.78.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of ONEOK. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.