We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Oneok (OKE) Up 7.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 7.8% in that time frame, outperforming 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 posted fourth-quarter 2018 operating earnings of 70 cents per share, which missed the Zacks Consensus Estimate of 74 cents by 5.4%. Nevertheless, the figure improved 337.5% on a year-over-year basis.
In 2018, the company delivered earnings of $2.78 per share compared with $1.29 per share in 2017. The upside can be attributed to volume growth across operations.
Total Revenues
Total revenues were $3.14 billion, which beat the Zacks Consensus Estimate of $3.09 billion by 1.6%. The figure declined 17.3% from $3.79 billion in the prior-year quarter.
In 2018, the company delivered revenues of $12.59 billion, up from $12.17 billion in 2017.
Quarterly Highlights
The company spent $2.32 billion on cost of sales and fuel, down 24.6% from the year-ago quarter’s tally.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $347.4 million, up 12.3% year over year.
The company incurred interest expenses of $118.5 million, down 4.6% from $124.2 million in the prior-year quarter. Operating income was $471.8 million in the fourth quarter, up from $400.5 million in the prior-year quarter.
Recently, ONEOK completed capital-growth project worth approximately $500 million.
Financial Highlights
As of Dec 31, 2018, ONEOK had cash and cash equivalents of $12 million compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $8,873.3 million as of Dec 31, 2018, up from $8,091.6 million as of Dec 31, 2017.
The company’s cash flow from operating activities at the end of Dec 31, 2018 was $2,186.7 million, up from $1,315.4 million at the end of Dec 31, 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,141.4 million, up from $567.6 million in the year-ago period.
Guidance
For 2019, ONEOK projects net income in the range of $1,140-$1,400 million. Also, the company expects 2019 adjusted EBITDA in the range of $2,500-$2,700 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Oneok has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oneok has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Oneok (OKE) Up 7.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 7.8% in that time frame, outperforming 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 Lags Q4 Earnings, Surpasses Revenue Estimates
ONEOK posted fourth-quarter 2018 operating earnings of 70 cents per share, which missed the Zacks Consensus Estimate of 74 cents by 5.4%. Nevertheless, the figure improved 337.5% on a year-over-year basis.
In 2018, the company delivered earnings of $2.78 per share compared with $1.29 per share in 2017. The upside can be attributed to volume growth across operations.
Total Revenues
Total revenues were $3.14 billion, which beat the Zacks Consensus Estimate of $3.09 billion by 1.6%. The figure declined 17.3% from $3.79 billion in the prior-year quarter.
In 2018, the company delivered revenues of $12.59 billion, up from $12.17 billion in 2017.
Quarterly Highlights
The company spent $2.32 billion on cost of sales and fuel, down 24.6% from the year-ago quarter’s tally.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $347.4 million, up 12.3% year over year.
The company incurred interest expenses of $118.5 million, down 4.6% from $124.2 million in the prior-year quarter. Operating income was $471.8 million in the fourth quarter, up from $400.5 million in the prior-year quarter.
Recently, ONEOK completed capital-growth project worth approximately $500 million.
Financial Highlights
As of Dec 31, 2018, ONEOK had cash and cash equivalents of $12 million compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $8,873.3 million as of Dec 31, 2018, up from $8,091.6 million as of Dec 31, 2017.
The company’s cash flow from operating activities at the end of Dec 31, 2018 was $2,186.7 million, up from $1,315.4 million at the end of Dec 31, 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,141.4 million, up from $567.6 million in the year-ago period.
Guidance
For 2019, ONEOK projects net income in the range of $1,140-$1,400 million. Also, the company expects 2019 adjusted EBITDA in the range of $2,500-$2,700 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Oneok has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oneok has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.