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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than ONEOK. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add ONEOK to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.