The 10-second takeaway
For the quarter ended June 30 (Q2), Williams Companies whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted. GAAP earnings per share didn't move.
Margins grew across the board.
Williams Companies booked revenue of $1.77 billion. The five analysts polled by S&P Capital IQ hoped for a top line of $2.14 billion on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $1.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.19. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. Non-GAAP EPS of $0.19 for Q2 were 14% lower than the prior-year quarter's $0.22 per share. GAAP EPS of $0.21 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 38.2%, much better than the prior-year quarter. Operating margin was 20.0%, 110 basis points better than the prior-year quarter. Net margin was 8.0%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.33 billion. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $8.31 billion. The average EPS estimate is $0.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 522 members out of 545 rating the stock outperform, and 23 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Williams Companies a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Companies is outperform, with an average price target of $39.92.
Is Williams Companies the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Williams Companies 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. The Motley Fool has no position in any of the stocks mentioned. 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.