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ONEOK (OKE) to Report Q4 Earnings: What's in the Cards?

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ONEOK, Inc. (OKE - Free Report) is scheduled to release fourth-quarter 2020 earnings on Feb 22, after market close. The company delivered an earnings surprise of 18.64% in the last reported quarter.

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

Factors to Consider

With companies starting to ramp up their production volumes, ONEOK’s diversified customer base along with its existing natural gas liquids and natural gas pipelines as well as its presence in the key producing regions is likely to have benefited from volume growth in its pipelines during the fourth quarter.

Completion of pipeline projects with long-term contracts is likely to have boosted the company’s fourth-quarter performance. Also, its greater dependence on fee-based income is expected to positively impact its to-be-reported results.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2020 sales is pegged at $2.91 billion, which indicates an increase of 9.21% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 74 cents per share, implying a 3.9% fall from the year-ago quarter’s reported number.

What Our Quantitative Model Predicts

Our proven model doesn’t predict 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 odds of an earnings beat, which is not the case here.

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. Price and EPS Surprise

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

 

Earnings ESP: ONEOK has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies worth considering from the same sector, which according to our model, have the right combination of elements to beat on earnings in the upcoming releases.

Exelon Corporation (EXC - Free Report) is set to release fourth-quarter 2020 results on Feb 24. It has an Earnings ESP of +2.34% and is a #3 Ranked player at present.

Essential Utilities Inc. (WTRG - Free Report) is set to release fourth-quarter 2020 results on Feb 24. It has an Earnings ESP of +5.50% and a Zacks Rank #3 at present.

American Electric Power Company, Inc. (AEP - Free Report) is set to release fourth-quarter 2020 results on Feb 25. It has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present.

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