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Williams (WMB) Posts In-Line Q2 Earnings, Misses Revenues
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North American energy firm, Williams Companies Inc. (WMB - Free Report) reported decent second-quarter 2016 earnings owing to significant cost reductions and continued improvement in financial performance.
The company reported adjusted earnings from continuing operations of 19 cents per share, in line with the Zacks Consensus Estimate. Moreover, the bottom line improved from the prior-year figure of 15 cents per share.
For the quarter ended Jun 30, 2016, Williams Companies reported revenues of $1,736 million. The top line not only missed the Zacks Consensus Estimate of $1,960 million but also declined from the year-ago quarter level of $1,839 million.
Segmental Analysis
Williams Partners: This segment reported adjusted operating profit of $1,065 million in the quarter, up 5.7% from $1,008 million in the year-ago quarter. The upside was largely driven by an improvement in operating and General and Administrative costs.
Williams NGL & Petchem Services:The unit incurred adjusted operating loss of $12 million, substantially wider than the year-ago quarter loss of $3 million. A significant rise in impairment charges and project development costs led to the underperformance.
Other: The segment posted adjusted operating profit of $12 million, which is same as the year-ago quarter profit.
Operating and maintenance expenses came in at $394 million as against $437 million in the second quarter of 2015.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies’ capital expenditure came in at $556 million. As of Jun 30, 2016, the company had long-term debt of $24,394 million, which represents a debt-to-capitalization ratio of 84%. Williams Companies has a cash balance of about $135 million.
Dividend Decrease
Williams has reduced itsquarterly cash dividend to 20 cents per share from 64 cents, effective from the third quarter of 2016, so as to invest in the pipeline unit of Williams Partners L.P . The dividends are expected to be increased again from 2018 onward.
Zacks Rank & Key Picks from the Sector
Williams Companies currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include GeoPark Limited (GPRK - Free Report) and Rex Energy Corporation . Both these stocks sport a Zacks Rank #1 (Strong Buy).
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Williams (WMB) Posts In-Line Q2 Earnings, Misses Revenues
North American energy firm, Williams Companies Inc. (WMB - Free Report) reported decent second-quarter 2016 earnings owing to significant cost reductions and continued improvement in financial performance.
The company reported adjusted earnings from continuing operations of 19 cents per share, in line with the Zacks Consensus Estimate. Moreover, the bottom line improved from the prior-year figure of 15 cents per share.
For the quarter ended Jun 30, 2016, Williams Companies reported revenues of $1,736 million. The top line not only missed the Zacks Consensus Estimate of $1,960 million but also declined from the year-ago quarter level of $1,839 million.
Segmental Analysis
Williams Partners: This segment reported adjusted operating profit of $1,065 million in the quarter, up 5.7% from $1,008 million in the year-ago quarter. The upside was largely driven by an improvement in operating and General and Administrative costs.
Williams NGL & Petchem Services:The unit incurred adjusted operating loss of $12 million, substantially wider than the year-ago quarter loss of $3 million. A significant rise in impairment charges and project development costs led to the underperformance.
Other: The segment posted adjusted operating profit of $12 million, which is same as the year-ago quarter profit.
Operating and Maintenance Expenses
WILLIAMS COS Price, Consensus and EPS Surprise
WILLIAMS COS Price, Consensus and EPS Surprise | WILLIAMS COS Quote
Operating and maintenance expenses came in at $394 million as against $437 million in the second quarter of 2015.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies’ capital expenditure came in at $556 million. As of Jun 30, 2016, the company had long-term debt of $24,394 million, which represents a debt-to-capitalization ratio of 84%. Williams Companies has a cash balance of about $135 million.
Dividend Decrease
Williams has reduced itsquarterly cash dividend to 20 cents per share from 64 cents, effective from the third quarter of 2016, so as to invest in the pipeline unit of Williams Partners L.P . The dividends are expected to be increased again from 2018 onward.
Zacks Rank & Key Picks from the Sector
Williams Companies currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include GeoPark Limited (GPRK - Free Report) and Rex Energy Corporation . Both these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>