The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ONEOK missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share expanded.
Margins grew across the board.
ONEOK reported revenue of $3.03 billion. The five analysts polled by S&P Capital IQ anticipated net sales of $3.33 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $3.60 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 $0.31. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.31 for Q3 were 6.9% higher than the prior-year quarter's $0.29 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 11.5%, 180 basis points better than the prior-year quarter. Operating margin was 8.0%, 110 basis points better than the prior-year quarter. Net margin was 2.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.49 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $12.66 billion. The average EPS estimate is $1.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 415 members out of 431 rating the stock outperform, and 16 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 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 $50.35.
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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. 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.