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Williams (WMB) Q3 Earnings Due: Is it Primed for a Beat?
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The Williams Companies, Inc. (WMB - Free Report) is set to release third-quarter results on Oct 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per share on revenues of $2.9 billion.
Let’s delve into the factors that might have influenced the oil and gas pipeline operator’s performance in the September quarter. But it’s worth taking a look at Williams’ previous-quarter results first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the energy infrastructure provider beat the consensus mark on higher business from its core natural gas transmission systems. Williams had reported adjusted earnings per share of 40 cents, beating the Zacks Consensus Estimate of 37 cents. But revenues of $2.5 billion generated by the firm came 17.2% below the consensus mark due to lower-than-expected numbers in the Northeast G&P unit.
WMB beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 17.3%, on average. This is depicted in the graph below:
Williams Companies, Inc. The Price and EPS Surprise
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 7.5% upward in the past seven days. The estimated figure indicates a 26.5% improvement year over year. The Zacks Consensus Estimate for revenues suggests a 15.8% increase from the year-ago period.
Factors to Consider
Williams’ Transmission & Gulf of Mexico segment — which includes the company’s crown jewel and the nation’s largest and fastest-growing natural gas pipeline system Transco — is expected to have generated robust profits in the third quarter.
The unit is likely to have benefited from the expansion projects around Transco being placed into service over the past few years and the additional volumes from their infrastructure on the back of strong drilling activity. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pegged at $671 million for the to-be-reported quarter, up from the prior-year period’s level of $630 million.
The Northeast G&P unit — engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions — is also expected to have done well in the to-be-reported quarter. Echoing the segment’s healthy dynamics, the Zacks Consensus Estimate for the quarter’s adjusted EBITDA is projected at $464 million. The number suggests a 5% increase from the profit of $442 million reported in the year-ago quarter.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Williams this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
WMB has an Earnings ESP of +1.53% and a Zacks Rank #1.
Williams is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Comstock Resources (CRK - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
For 2022, Comstock Resources has a projected earnings growth rate of 230.2%. Valued at around $3.9 billion, CRK has gained 65.8% in a year.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
For 2022, Sunoco has a projected earnings growth rate of 14.8%. Valued at around $4.2 billion, SUN has edged up 1.8% in a year.
ExxonMobil (XOM - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 28.
The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 3.8% upward over the past 60 days. Valued at around $444.3 billion, ExxonMobil has lost 64.5% in a year.
Image: Bigstock
Williams (WMB) Q3 Earnings Due: Is it Primed for a Beat?
The Williams Companies, Inc. (WMB - Free Report) is set to release third-quarter results on Oct 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per share on revenues of $2.9 billion.
Let’s delve into the factors that might have influenced the oil and gas pipeline operator’s performance in the September quarter. But it’s worth taking a look at Williams’ previous-quarter results first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the energy infrastructure provider beat the consensus mark on higher business from its core natural gas transmission systems. Williams had reported adjusted earnings per share of 40 cents, beating the Zacks Consensus Estimate of 37 cents. But revenues of $2.5 billion generated by the firm came 17.2% below the consensus mark due to lower-than-expected numbers in the Northeast G&P unit.
WMB beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 17.3%, on average. This is depicted in the graph below:
Williams Companies, Inc. The Price and EPS Surprise
Williams Companies, Inc. The price-eps-surprise | Williams Companies, Inc. The Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 7.5% upward in the past seven days. The estimated figure indicates a 26.5% improvement year over year. The Zacks Consensus Estimate for revenues suggests a 15.8% increase from the year-ago period.
Factors to Consider
Williams’ Transmission & Gulf of Mexico segment — which includes the company’s crown jewel and the nation’s largest and fastest-growing natural gas pipeline system Transco — is expected to have generated robust profits in the third quarter.
The unit is likely to have benefited from the expansion projects around Transco being placed into service over the past few years and the additional volumes from their infrastructure on the back of strong drilling activity. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pegged at $671 million for the to-be-reported quarter, up from the prior-year period’s level of $630 million.
The Northeast G&P unit — engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions — is also expected to have done well in the to-be-reported quarter. Echoing the segment’s healthy dynamics, the Zacks Consensus Estimate for the quarter’s adjusted EBITDA is projected at $464 million. The number suggests a 5% increase from the profit of $442 million reported in the year-ago quarter.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Williams this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
WMB has an Earnings ESP of +1.53% and a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Williams is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Comstock Resources (CRK - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
For 2022, Comstock Resources has a projected earnings growth rate of 230.2%. Valued at around $3.9 billion, CRK has gained 65.8% in a year.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
For 2022, Sunoco has a projected earnings growth rate of 14.8%. Valued at around $4.2 billion, SUN has edged up 1.8% in a year.
ExxonMobil (XOM - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 28.
The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 3.8% upward over the past 60 days. Valued at around $444.3 billion, ExxonMobil has lost 64.5% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.