The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ONEOK Partners beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share shrank significantly.
Margins contracted across the board.
ONEOK Partners booked revenue of $2.92 billion. The seven analysts polled by S&P Capital IQ wanted to see net sales of $2.53 billion on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $3.14 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 $0.66. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.66 for Q4 were 48% lower than the prior-year quarter's $1.26 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 13.7%, 210 basis points worse than the prior-year quarter. Operating margin was 7.7%, 240 basis points worse than the prior-year quarter. Net margin was 7.2%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.15 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $12.16 billion. The average EPS estimate is $2.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 658 members out of 673 rating the stock outperform, and 15 members rating it underperform. Among 242 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 237 give ONEOK Partners 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 Partners is hold, with an average price target of $64.31.
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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 Partners, L.P. 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.