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Williams (WMB) Beats Earnings and Revenue Estimates in Q2
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Williams Companies, Inc. (WMB - Free Report) reported second-quarter 2018 adjusted earnings from continuing operations of 17 cents per share, marginally outpacing the Zacks Consensus Estimate of 16 cents. The better-than-expected results can be attributed to increase in service revenues and NGL margins. Further, the bottom line improved from the prior-year figure of 13 cents per share.
For the quarter ended Jun 30, 2018, Williams Companies reported revenues of $2,091 million, beating the Zacks Consensus Estimate of $2,000 million. Further, revenues also increased from the year-ago figure of $1,924 million.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Williams Partners L.P.: This segment reported adjusted operating profit of $1,097 million, slightly lower than $1,104 million recorded in the year-ago quarter. Lower earnings at Discovery Producer Services and sale of the Geismar olefins facility impacted the results.
Other: The segment posted adjusted operating profit of $13 million, higher than the prior-year quarter’s $9 million.
Expenses Summary
Total cost and expenses increased 8.7% to $1,681 million in the reported quarter compared with $1,546 million in the prior-year quarter. The increased costs were primarily driven by higher product costs, impairment charges and processing commodity expenses.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies’ capital expenditure was $933 million. As of Jun 30, 2018, the company had cash and cash equivalents of $275 million. Long-term debt of the company was $21,313 million, representing a debt-to-capitalization ratio of 69.5%.
Outlook
The company has updated its guidance for 2018 and 2019. Williams Companies now expects its adjusted EBITDA for 2018 within $4,450-$4,650 million. The company expects distributable cash flow in the range of $2,600-$2,900 million. The coverage ratio is expected between 1.52x and 1.70x in 2018. The growth capex is now anticipated at $3.9 billion versus prior guidance of $2.6 billion.
For 2019, Williams Companies anticipates its adjusted EBITDA in the band of $4,850-$5,150 million, with distributable cash flow within $2,900-$3.300 million. The coverage ratio is expected to be around 1.68x. Growth capex for 2019 is expected at $2.6 billion versus prior guidance of $2.4 billion.
Zacks Rank and Key Picks
Williams Companies currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are China Petroleum and Chemical Corporation , also known as Sinopec, PetroChina Company Limited , and Bonanza Creek Energy, Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
PetroChina delivered an average positive earnings surprise of 21.99% in the trailing four quarters.
Bonanza Creek surpassed earnings estimates in each of the trailing four quarters, with an average positive earnings surprise of 215.16%
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Williams (WMB) Beats Earnings and Revenue Estimates in Q2
Williams Companies, Inc. (WMB - Free Report) reported second-quarter 2018 adjusted earnings from continuing operations of 17 cents per share, marginally outpacing the Zacks Consensus Estimate of 16 cents. The better-than-expected results can be attributed to increase in service revenues and NGL margins. Further, the bottom line improved from the prior-year figure of 13 cents per share.
For the quarter ended Jun 30, 2018, Williams Companies reported revenues of $2,091 million, beating the Zacks Consensus Estimate of $2,000 million. Further, revenues also increased from the year-ago figure of $1,924 million.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise | Williams Companies, Inc. (The) Quote
Segmental Analysis
Williams Partners L.P.: This segment reported adjusted operating profit of $1,097 million, slightly lower than $1,104 million recorded in the year-ago quarter. Lower earnings at Discovery Producer Services and sale of the Geismar olefins facility impacted the results.
Other: The segment posted adjusted operating profit of $13 million, higher than the prior-year quarter’s $9 million.
Expenses Summary
Total cost and expenses increased 8.7% to $1,681 million in the reported quarter compared with $1,546 million in the prior-year quarter. The increased costs were primarily driven by higher product costs, impairment charges and processing commodity expenses.
Capital Expenditure & Balance Sheet
During the reported quarter, Williams Companies’ capital expenditure was $933 million. As of Jun 30, 2018, the company had cash and cash equivalents of $275 million. Long-term debt of the company was $21,313 million, representing a debt-to-capitalization ratio of 69.5%.
Outlook
The company has updated its guidance for 2018 and 2019. Williams Companies now expects its adjusted EBITDA for 2018 within $4,450-$4,650 million. The company expects distributable cash flow in the range of $2,600-$2,900 million. The coverage ratio is expected between 1.52x and 1.70x in 2018. The growth capex is now anticipated at $3.9 billion versus prior guidance of $2.6 billion.
For 2019, Williams Companies anticipates its adjusted EBITDA in the band of $4,850-$5,150 million, with distributable cash flow within $2,900-$3.300 million. The coverage ratio is expected to be around 1.68x. Growth capex for 2019 is expected at $2.6 billion versus prior guidance of $2.4 billion.
Zacks Rank and Key Picks
Williams Companies currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are China Petroleum and Chemical Corporation , also known as Sinopec, PetroChina Company Limited , and Bonanza Creek Energy, Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sinopec delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
PetroChina delivered an average positive earnings surprise of 21.99% in the trailing four quarters.
Bonanza Creek surpassed earnings estimates in each of the trailing four quarters, with an average positive earnings surprise of 215.16%
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>