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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