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ONEOK (OKE) to Post Q2 earnings: Is a Beat in the Cards?

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ONEOK, Inc. (OKE - Free Report) is scheduled to release second-quarter 2018 results on Jul 31. In the last reported quarter, the company delivered a positive earnings surprise of 3.23%.

What Does the Quantitative Model Predicts

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.

Earnings ESP: The company’s Earnings ESP is +0.70%. The Most Accurate Estimate is 67 cents and the Zacks Consensus Estimate is pegged at 66 cents.

ONEOK, Inc. Price and EPS Surprise

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

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

 ONEOK projects earnings to surge more than 95% from fee-based contracts in second-quarter 2018 results. Also, the company is likely to benefit from newly operational petrochemical facilities and rising export volumes in the upcoming quarters.

The Zacks Consensus Estimate for second-quarter 2018 earnings is pegged at 66 cents. The projected figure reflects an increase of 100% year over year. Natural gas and natural gas liquids (NGL) production volume in the STACK & SCOOP areas and Williston & Permian basins are expected to cater to the rising demand.

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:

National Fuel Gas Company (NFG - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank of 3. The company is expected to report third-quarter fiscal 2018 results on Aug 2.

Southwest Gas Corporation (SWX - Free Report) has an Earnings ESP of +12.90% and a Zacks Rank #2. The company is expected to release second-quarter 2018 earnings on Aug 6.

Vectren Corporation has an Earnings ESP of +2.91% and a Zacks Rank of 3. The company is likely to announce second-quarter 2018 earnings on Aug 1.

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