雅虎香港財經 Oneok (OKE) Up 3.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Oneok Inc. (OKE). Shares have added about 3.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ONEOK Q1 Earnings & Revenues Fall Shy of Estimates
ONEOK Inc. reported first-quarter 2024 operating earnings per share (EPS) of $1.09, which missed the Zacks Consensus Estimate of $1.13 by 3.5%. The bottom line also declined 53.4% from the year-ago quarter’s figure of $2.34.
Total Revenues
Operating revenues for the quarter totaled $4.78 billion, which missed the Zacks Consensus Estimate of $5.84 billion by 18.2%. However, the top line improved 5.8% from $4.52 billion in the prior-year quarter.
Highlights of the Release
Adjusted EBITDA came in at $1.44 billion, down 16.8% year over year.
Operating income totaled $1.06 billion, down 28.9% from the prior-year quarter’s level of $1.5 billion.
ONEOK incurred interest expenses of $300 million, up 80.7% from $166 million recorded in the year-ago period.
Total natural gas processed was 2,894 billion British thermal units per day (BBtu/d), up 3.6% year over year.
The company's reported natural gas transportation capacity contracted of 8,086 million British thermal units per hour per day (MDth/d) increased 5.1% year over year.
Financial Highlights
As of Mar 31, 2024, the company had cash and cash equivalents worth $65 million compared with $338 million as of Dec 31, 2023.
Long-term debt (excluding current maturities) totaled $20.4 billion as of Mar 31, 2024, which compared with $21.1 billion as of Dec 31, 2023.
Cash provided by operating activities for the first three months of 2024 amounted to $596 million compared with $1.2 billion in the corresponding period of 2023.
2024 Guidance
ONEOK increased its consolidated 2024 net income in the band of $2.73-$3.03 billion from the previous range of $2.6-$3 billion. It now expects adjusted EBITDA in the range of $6.03-$ 6.33 billion compared with the previous range of $5.9-$6.3 billion.
Total capital expenditures are expected between $1.75 billion and $1.95 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Oneok has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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ONEOK, Inc. (OKE) : Free Stock Analysis Report
