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ONEOK (OKE) to Post Q2 Earnings: Is a Beat in the Cards?

Zacks Equity Research

ONEOK, Inc. OKE is scheduled to release second-quarter 2019 results on Jul 30, after market close. In the last four quarters, the company delivered an average positive earnings surprise of 3.17 %

What Does the Zacks Model Say?

Our proven model shows that ONEOK is likely to beat estimates in the quarter to be reported. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has an Earnings ESP of +0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ONEOK currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +3.04% ESP makes us confident of an earnings beat in the upcoming quarterly results.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote

Factors at Pay

ONEOK expects higher production in the resource rich region where it has extensive midstream assets. This should boost quarterly revenues. On the bottom-line front, the company is likely to gain from higher percentage of fee-based earnings.

The completed projects should increase company’s gathering, processing along transportation and storage capacity, which are going to have a positive impact on its quarterly results.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter 2019 earnings per share is pegged at 71 cents. The projected figure suggests year-over-year increase of 4.41%. The consensus estimate for second-quarter revenues is pegged at $2.70 billion, calling for year-over-year decline of 8.76%.

Stocks to Consider

Investors can also consider other stocks from the same industry,which also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corp. ETR has an Earnings ESP of +1.40% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results on Jul 31.

NextEra Energy, Inc. NEE has an Earnings ESP of +1.41% and a Zacks Rank #3. The company is likely to report second-quarter 2019 results on Jul 24.

The Southern Company SO has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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