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ONEOK (OKE) to Post Q3 Earnings: Is a Beat in the Cards?

Zacks Equity Research

ONEOK, Inc. OKE is scheduled to release third-quarter 2019 earnings on Oct 29, after market close.

Notably, the company delivered an average positive earnings surprise of 4.58% in the last four quarters.

Factors to Consider

The southern section of ONEOK’s Elk Creek pipeline has started commercial operation from July and it is currently transporting more than 30,000 barrels per day of NGLs. ONEOK’s third-quarter earnings are likely to have benefited from this factor.

In its second-quarter earnings call, the company announced that volume growth on West Texas LPG pipeline will lead to higher average fee rate in the Permian basin and Gulf Coast operations regions. We believe increased production in the resource rich region and higher percentage of fee-based earnings must have boosted the company’s third-quarter revenues.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter 2019 sales is pegged at $2.72 billion, which indicates a decline of 19.97% from the year-ago quarter’s figure. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 74 cents per share, which calls for year-over-year fall of 1.33%.
 

ONEOK, Inc. Price and EPS Surprise

 

ONEOK, Inc. Price and EPS Surprise

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

 

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +1.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK carries a Zacks Rank #3.

Other Stocks to Consider

Investors can consider other players from the same sector that also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

South Jersey Industries, Inc SJI is scheduled to release third-quarter 2019 results on Nov 6. It has an Earnings ESP of +15.85% and a Zacks Rank #3.

American Electric Power Company AEP is slated to release third-quarter 2019 results on Oct 24. It has an Earnings ESP of +2.68% and a Zacks Rank #2.

Entergy Corporation ETR is set to release third-quarter 2019 numbers on Oct 30. It has an Earnings ESP of +2.04% and carries a Zacks Rank #3.

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Entergy Corporation (ETR) : Free Stock Analysis Report
 
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