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ONEOK (OKE) to Report Q1 Earnings: What's in the Cards?

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ONEOK, Inc. OKE is scheduled to release first-quarter 2018 results on May 1, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 1.96%.

Let’s see, how things are shaping up for the upcoming quarter.

Factors to Consider

ONEOK expects to benefit from increased natural gas and natural gas liquids (NGL) production volume in the STACK & SCOOP areas and Williston & Permian basins along with ethane recovery in Mid-Continent.

The company completed two large-scale petrochemical crackers, which are likely to boost ethane demand in the Gulf Coast and drive EBITDA, which will be reflected in the upcoming quarterly results.

The Zacks Consensus Estimate for first-quarter 2018 earnings per share is pegged at 63 cents. The projected figure reflects an increase of 19.23% year over year. The Zacks Consensus Estimate moved up 5.4% in last 60 days.

Earnings Whispers

Our proven model does not show that ONEOK is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: ONEOK has an Earnings ESP of -1.33%, representing the percentage difference between the Most Accurate estimate of 62 cents and the Zacks Consensus Estimate of 63 cents.

 

ONEOK, Inc. Price and EPS Surprise

 

 

Zacks Rank: ONEOK’s Zacks Rank #3 increases the predictive power of ESP. However, a stock also needs a positive ESP to be able to beat estimates. Therefore, this combination makes surprise prediction difficult.

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

Stocks to Consider

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

Atmos Energy Corporation (ATO - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank of 3. The company is expected to report second-quarter fiscal 2018 results on May 2.

Just Energy Group, Inc. has an Earnings ESP of +23.08% and a Zacks Rank #3. The company is expected to release fourth-quarter fiscal 2018 earnings on May 16.

South Jersey Industries, Inc. has an Earnings ESP of +5.21% and a Zacks Rank of 1. The company is likely to announce first-quarter 2018 earnings on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

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