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ONEOK (OKE) to Post Q4 Earnings: Is a Beat in the Cards?

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ONEOK, Inc. (OKE - Free Report) is scheduled to release fourth-quarter 2019 earnings on Feb 24, 2020, after market close. The company has trailing four-quarter positive earnings surprise of 3.17%, on average.

Let’s see how things are placed ahead of the upcoming quarterly announcement.

Factors to Consider

ONEOK’s Demicks Lake I natural gas processing plant in North Dakota, was completed in early October. This is likely to have had a positive impact on ONEOK’s fourth-quarter earnings. The 900-miles Elk Creek Pipeline project was completed and commissioned for commercial services in December 2019 and expected to have boosted results marginally

We believe that consistent growth in NGL volumes in Permian Basin and Gulf Coast operations driven by completed West Texas LPG expansion projects. The company continues to benefit from increased production in the resource rich region. Also higher percentage of fee-based earnings are likely to have boosted the company’s fourth-quarter revenues.

ONEOK, Inc. Price and EPS Surprise

 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote

 

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2019 sales is pegged at $2.43 billion, which indicates a decline of 22.57% from the year-ago quarter’s figure. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 75 cents per share, which calls for year-over-year increase of 7.14%.

Quantitative Model Predicts

Our proven model predicts an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +2.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK carries a Zacks Rank #3.

 Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

NiSource, Inc (NI - Free Report) is set to release fourth-quarter 2019 numbers on Feb 26. It has an Earnings ESP of +2.38% and carries a Zacks Rank #3.

Public Service Enterprise Group Incorporated (PEG - Free Report) is scheduled to release fourth-quarter 2019 results on Feb 26. It has an Earnings ESP of +2.01% and a Zacks Rank #3.

The AES Corporation (AES - Free Report) is set to release fourth-quarter 2019 numbers on Feb 28. It has an Earnings ESP of +0.76% and carries a Zacks Rank #3.

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