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Why Is Oneok (OKE) Down 3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have lost about 3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? 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 recorded second-quarter 2022 operating earnings per share of 92 cents, which surpassed the Zacks Consensus Estimate of 84 cents by 9.5%. The bottom line improved by 19.5% from the year-ago quarter’s tally of 77 cents.
Total Revenues
Operating revenues of $5,996.7 million missed the Zacks Consensus Estimate of $6,367 million by 5.8%. However, the top line improved by 76.9% from $3,389 million in the prior-year quarter.
Highlights of the Release
ONEOK spent $4,878 million on the cost of sales and fuel, up 106.1% from the year-ago quarter’s level.
In the second quarter, OKE’s adjusted EBITDA was $886 million, up 10.5% year over year.
ONEOK’s operating income came in at $689 million in the second quarter, up 12.7% from the prior-year quarter’s reading.
ONEOK incurred interest expenses worth $170.8 million, down 7.7% from the prior-year quarter’s level.
Financial Highlights
As of Jun 30, 2022, ONEOK had cash and cash equivalents worth $135.8 million compared with $146.4 million as of Dec 31, 2021.
The long-term debt (excluding current maturities) was $12,872.7 million as of Jun 30, 2022, up from $12,747.6 million as of Dec 31, 2021.
ONEOK’s cash provided by operating activities for the first six months of 2022 was $1,249.6 million compared with $1,077.9 million in the year-ago period.
Capital expenditures (including maintenance) amounted to $559.3 million in the first six months of 2022, up from $324.6 million in the corresponding period of the last year.
Guidance
ONEOK affirmed the 2022 net income and adjusted EBITDA in the range of $1,550-$1,830 million and the $3,470-$3,770 million range, respectively. OKE reiterated 2022 EPS in the range of $3.45-$4.07. The Zacks Consensus Estimate for 2022 earnings of $3.65 per share is lower than $3.76, the midpoint of the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Oneok has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Oneok is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Over the past month, Plains All American Pipeline (PAA - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended June 2022 more than a month ago.
Plains All American reported revenues of $16.36 billion in the last reported quarter, representing a year-over-year change of +64.7%. EPS of $0.30 for the same period compares with $0.23 a year ago.
Plains All American is expected to post earnings of $0.27 per share for the current quarter, representing a year-over-year change of +22.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Plains All American. Also, the stock has a VGM Score of A.
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Why Is Oneok (OKE) Down 3% Since Last Earnings Report?
A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have lost about 3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? 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 Q2 Earnings Beat Estimates, Revenues Rise Y/Y
ONEOK recorded second-quarter 2022 operating earnings per share of 92 cents, which surpassed the Zacks Consensus Estimate of 84 cents by 9.5%. The bottom line improved by 19.5% from the year-ago quarter’s tally of 77 cents.
Total Revenues
Operating revenues of $5,996.7 million missed the Zacks Consensus Estimate of $6,367 million by 5.8%. However, the top line improved by 76.9% from $3,389 million in the prior-year quarter.
Highlights of the Release
ONEOK spent $4,878 million on the cost of sales and fuel, up 106.1% from the year-ago quarter’s level.
In the second quarter, OKE’s adjusted EBITDA was $886 million, up 10.5% year over year.
ONEOK’s operating income came in at $689 million in the second quarter, up 12.7% from the prior-year quarter’s reading.
ONEOK incurred interest expenses worth $170.8 million, down 7.7% from the prior-year quarter’s level.
Financial Highlights
As of Jun 30, 2022, ONEOK had cash and cash equivalents worth $135.8 million compared with $146.4 million as of Dec 31, 2021.
The long-term debt (excluding current maturities) was $12,872.7 million as of Jun 30, 2022, up from $12,747.6 million as of Dec 31, 2021.
ONEOK’s cash provided by operating activities for the first six months of 2022 was $1,249.6 million compared with $1,077.9 million in the year-ago period.
Capital expenditures (including maintenance) amounted to $559.3 million in the first six months of 2022, up from $324.6 million in the corresponding period of the last year.
Guidance
ONEOK affirmed the 2022 net income and adjusted EBITDA in the range of $1,550-$1,830 million and the $3,470-$3,770 million range, respectively. OKE reiterated 2022 EPS in the range of $3.45-$4.07. The Zacks Consensus Estimate for 2022 earnings of $3.65 per share is lower than $3.76, the midpoint of the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Oneok has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Oneok is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Over the past month, Plains All American Pipeline (PAA - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended June 2022 more than a month ago.
Plains All American reported revenues of $16.36 billion in the last reported quarter, representing a year-over-year change of +64.7%. EPS of $0.30 for the same period compares with $0.23 a year ago.
Plains All American is expected to post earnings of $0.27 per share for the current quarter, representing a year-over-year change of +22.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Plains All American. Also, the stock has a VGM Score of A.