We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Williams Companies (WMB) Up 2.3% Since the Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB - Free Report) . Shares have added about 2.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Williams Companies reported impressive fourth-quarter 2016 earnings on the back of significant cost reductions and continued improvement in financial performance.
The company reported adjusted earnings from continuing operations of $0.17 per share that surpassed the Zacks Consensus Estimate of $0.16. Also, the bottom line improved from the prior-year figure of $0.01 per share.
For the quarter ended Dec 31, 2016, Williams Companies reported revenues of $2,198 million. The top line handily beat the Zacks Consensus Estimate of $1,889 million and also improved from the year-ago quarter level of $2,006 million.
Segmental Analysis
Williams Partners: This segment reported adjusted operating profit of $1,113 million, up 4.6% from $1,064 million in the year-ago quarter. The upside was primarily driven by a reduction in operating and maintenance costs as well as selling, general and administrative expenses.
Williams NGL & Petchem Services: The unit incurred adjusted operating loss of $4 million, narrower than the year-ago quarter loss of $6 million.
Other: The segment posted adjusted operating profit of $14 million compared with the year-ago quarter profit of $8 million.
Operating and Maintenance Expenses
Operating and maintenance expenses came in at $401 million as against $428 million in the fourth quarter of 2015.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies' capital expenditure was $474 million. As of Dec 31, 2016, the company had long-term debt of $22,624 million, which represents a debt-to-capitalization ratio of 83.1%. Williams Companies has a cash balance of about $170 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. In the past month, the consensus estimate has also shifted downward by 31.3% due to these changes.
Williams Companies, Inc. (The) Price and Consensus
At this time, Williams Companies' stock has a strong Growth Score of 'A', though it is lagging a bit on the momentum front with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our styles scores, the stock is more suitable for growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are expecting a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Williams Companies (WMB) Up 2.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB - Free Report) . Shares have added about 2.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Williams Companies reported impressive fourth-quarter 2016 earnings on the back of significant cost reductions and continued improvement in financial performance.
The company reported adjusted earnings from continuing operations of $0.17 per share that surpassed the Zacks Consensus Estimate of $0.16. Also, the bottom line improved from the prior-year figure of $0.01 per share.
For the quarter ended Dec 31, 2016, Williams Companies reported revenues of $2,198 million. The top line handily beat the Zacks Consensus Estimate of $1,889 million and also improved from the year-ago quarter level of $2,006 million.
Segmental Analysis
Williams Partners: This segment reported adjusted operating profit of $1,113 million, up 4.6% from $1,064 million in the year-ago quarter. The upside was primarily driven by a reduction in operating and maintenance costs as well as selling, general and administrative expenses.
Williams NGL & Petchem Services: The unit incurred adjusted operating loss of $4 million, narrower than the year-ago quarter loss of $6 million.
Other: The segment posted adjusted operating profit of $14 million compared with the year-ago quarter profit of $8 million.
Operating and Maintenance Expenses
Operating and maintenance expenses came in at $401 million as against $428 million in the fourth quarter of 2015.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies' capital expenditure was $474 million. As of Dec 31, 2016, the company had long-term debt of $22,624 million, which represents a debt-to-capitalization ratio of 83.1%. Williams Companies has a cash balance of about $170 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. In the past month, the consensus estimate has also shifted downward by 31.3% due to these changes.
Williams Companies, Inc. (The) Price and Consensus
Williams Companies, Inc. (The) Price and Consensus | Williams Companies, Inc. (The) Quote
VGM Scores
At this time, Williams Companies' stock has a strong Growth Score of 'A', though it is lagging a bit on the momentum front with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our styles scores, the stock is more suitable for growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are expecting a below average return from the stock in the next few months.