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ONEOK Inc (OKE) to Post Q2 Earnings: What's in the Cards?

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ONEOK Inc. (OKE - Free Report) is scheduled to report second-quarter 2017 earnings results on Aug 1, after the market closes. Last quarter, the company recorded a negative earnings surprise of 8.89%.

Let’s see how things are shaping up at the company prior to this announcement.

Factors to Consider

ONEOK Inc. is expected to benefit from its long-term, firm, fee-based commitments and expansion of its gas transmission pipeline in highly productive regions. The concluded capital growth projects in its natural gas pipelines segment will provide additional avenues for fee –based earnings.

Lower breakeven costs in Williston and Permian basins are ensuring higher production volumes from the drillers which are helping this midstream service provider.

ONEOK Inc. at the end of second quarter completed the acquisition of ONEOK Partners. This acquisition will help drive long term growth of the company and ensure higher returns for the shareholders.

ONEOK, Inc. Price, Consensus and EPS Surprise

 

Earnings Whispers

Our proven model does not conclusively show that ONEOK is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 46 cents per share. Hence, the difference is 0.00%.

Zacks Rank: ONEOK carries a Zacks Rank #3. Though a Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks from the industry that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Sempra Energy (SRE - Free Report) has an Earnings ESP of +11.25% and a Zacks Rank #2. The company is expected to release second-quarter 2017 on Aug 4.

NewJersey Resources Corporation (NJR - Free Report) has an Earnings ESP of +700% and a Zacks Rank #2. The company is expected to release second-quarter 2017 results on Aug 2.

Atmos Energy Corporation (ATO - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2. The company is expected to release second-quarter 2017 results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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