It has been about a month since the last earnings report for Oneok Inc. (OKE Quick QuoteOKE - Free Report) . Shares have lost about 0.7% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

ONEOK’s Earnings and Revenues Miss Estimates in Q1

ONEOK Inc. recorded first-quarter 2022 operating earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 89 cents by 2.2%. However, the bottom line improved by a penny from the year-ago quarter’s tally of 86 cents.

Total Revenues

Operating revenues of $5,445 million missed the Zacks Consensus Estimate of $5,865 million by 7.2%. However, the top line improved by 70.4% from $3,195 million in the prior-year quarter.

Highlights of the Release

ONEOK spent $4,366 million on the cost of sales and fuel, up 105.7% from the year-ago quarter’s level.

In the first quarter, OKE’s adjusted EBITDA was $863.9 million, down 0.3% year over year.

ONEOK’s operating income came in at $662.5 million in the first quarter, down 0.3% from the prior-year quarter’s reading.

ONEOK incurred interest expenses worth $172.1 million, down 7.2% from the prior-year quarter’s level.

Financial Highlights

As of Mar 31, 2022, ONEOK had cash and cash equivalents worth $14.6 million compared with $146.4 million as of Dec 31, 2021.

The long-term debt (excluding current maturities) was $12,750.5 million as of Mar 31, 2022, up from $12,747.6 million as of Dec 31, 2021.

ONEOK’s cash provided by the operating activities for the first three months of 2022 was $462.2 million compared with $533.3 million from the prior-year quarter’s level.

Capital expenditures (including maintenance) amounted to $257 million in the first quarter of 2022, up from $176.7 million in the corresponding quarter of the last year.

Guidance

ONEOK affirmed the 2022 net income and adjusted EBITDA in the range of $1,550-$1,830 million and $3,470-$3,770 million, respectively. OKE reiterated 2022 EPS in the range of $3.45-$4.07. The Zacks Consensus Estimate for 2022 earnings of $3.87 per share is higher than $3.76, the midpoint of the guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Oneok belongs to the Zacks Oil and Gas - Production Pipeline - MLB industry. Another stock from the same industry, Enterprise Products Partners (EPD Quick QuoteEPD - Free Report) , has gained 3.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.

Enterprise Products reported revenues of $13.01 billion in the last reported quarter, representing a year-over-year change of +42.1%. EPS of $0.60 for the same period compares with $0.64 a year ago.

Enterprise Products is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of +17.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Enterprise Products. Also, the stock has a VGM Score of A.