ONEOK's (OKE) Earnings Beat Estimates in Q1, Revenues Miss
ONEOK Inc OKE posted first-quarter 2020 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 3.75%. Also, the bottom line increased 2.46% on a year-over-year basis.
Total Revenues
Total revenues were $2.14 billion, which missed the Zacks Consensus Estimate of $2.51 billion by 15%. The figure declined 23.1% from $2.78 billion in the prior-year quarter.
Highlights of the Release
The company spent $1.27 billion on cost of sales and fuel, down 34.7% from the year-ago quarter’s tally.
In the first quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $700.8 million, up 10% year over year.
The company incurred interest expenses of $140.6 million, up 21.8% from $115.4 million in the prior-year quarter.
The company incurred operating loss of $83.4 million in the first quarter, against operating income of $468.7 million in the prior-year quarter.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Financial Highlights
As of Mar 31, ONEOK had cash and cash equivalents of $531.6 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,146.6 million as of Mar 31, 2020, up from $12,479.7 million as of Dec 31, 2019.
The company’s cash flow from operating activities at the end of the first quarter was $422.7 million, up from $353.6 million at the end of first-quarter 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $949.6 million at the end of the first quarter, up from $889.7 million in the year-ago quarter.
Guidance
For 2020, ONEOK projects net income in the range of $500-$900 million, which includes the $641.8 million impact of first-quarter impairment charges. Also, the company expects 2020 adjusted EBITDA in the range of $2,600-$3,000 million.
Zacks Rank
ONEOK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Release
ONE Gas Inc. OGS reported first-quarter 2020 earnings of $1.72 per share, which lagged the Zacks Consensus Estimate of $1.78 by 3.4%.
Upcoming Releases
Sempra Energy SRE is slated to release first-quarter 2020 earnings on May 4. The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $2.26.
Atmos Energy Corporation ATO is scheduled to release second-quarter fiscal 2020 results on May 6. The Zacks Consensus Estimate for earnings per share is pegged at $1.13.
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