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

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

ONEOK's (OKE) Q3 results to benefit from capital growth projects and strategic acquisitions.

ONEOK, Inc. OKE is scheduled to release third-quarter 2018 results on Oct 30, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 1.49%.

What Does the Quantitative Model Predict?

A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. Our model shows that the company is likely to beat estimates in the soon-to-be-reported quarter as it has right combination of these factors.

Earnings ESP: The company’s Earnings ESP is +3.55%. The Most Accurate Estimate is at 74 cents and the Zacks Consensus Estimate is pegged at 71 cents.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ONEOK, Inc. Price and EPS Surprise

 

ONEOK, Inc. Price and EPS Surprise | ONEOK, Inc. Quote

 

Zacks Rank: ONEOK’s Zacks Rank #3, when combined with a positive Earnings ESP, increases the possibility of a beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider

Fee-based services are expected to be the largest contributor to earnings growth. Expansion of integrated assets through capital growth projects and strategic acquisitions will drive performance.

ONEOK’s strategically positioned assets in the best natural gas liquids (NGL) production regions are likely to boost upcoming results. Increasing production volumes in the STACK & SCOOP areas as well as presence in Permian and Bakken Basins are likely to drive performance.

Other Stocks to Consider

Here are a few other players worth considering from the same industry with the right combination of elements to beat estimates:

ONE Gas, Inc OGS has an Earnings ESP of +0.24% and a Zacks Rank of 2. The company is expected to report third-quarter 2018 results on Oct 29.

Northwest Natural Gas Company NWN has an Earnings ESP of +1.24% and a Zacks Rank #2. The company is expected to release third-quarter 2018 earnings on Nov 6.

National Fuel Gas Company NFG has an Earnings ESP of +1.79% and a Zacks Rank of 1. The company is likely to announce fourth-quarter fiscal 2018 earnings on Nov 1.

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National Fuel Gas Company (NFG) : Free Stock Analysis Report
 
ONE Gas, Inc. (OGS) : Free Stock Analysis Report
 
Northwest Natural Gas Company (NWN) : Free Stock Analysis Report
 
ONEOK, Inc. (OKE) : Free Stock Analysis Report
 
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