The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ONEOK beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped.
Gross margins dropped, operating margins dropped, net margins grew.
ONEOK reported revenue of $3.66 billion. The five analysts polled by S&P Capital IQ hoped for revenue of $3.31 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $4.07 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 $0.53. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.46 per share. GAAP EPS of $0.53 for Q4 were 1.9% lower than the prior-year quarter's $0.54 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 11.0%, 30 basis points worse than the prior-year quarter. Operating margin was 8.0%, 100 basis points worse than the prior-year quarter. Net margin was 3.0%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.99 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $14.89 billion. The average EPS estimate is $1.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 413 members out of 428 rating the stock outperform, and 15 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 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 $53.10.
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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 recommends 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.