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ONEOK (OKE) Earnings Miss Estimates in Q2, Revenues Beat
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ONEOK Inc. (OKE - Free Report) reported second-quarter 2017 operating earnings of 33 cents per share, missing the Zacks Consensus Estimate of 45 cents by 26.7%.
Reported earnings also declined 19.5% year over year.
Total Revenue
ONEOK’s total revenue of $2,725.8 million surpassed the Zacks Consensus Estimate of $2,579 million by 5.69%. Revenues also jumped 27.73% from $2,134.1 million in the prior-year quarter.
Quarterly Highlights
In the quarter under review, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $462.3, up 0.5% year over year.
In the second quarter, the company spent $2,091 million on cost of sales and fuel, up 36.9%.
Operating income came in at $316.7 million in the second quarter, up 0.4%.
The company incurred interest expenses of $118.5 million, down 0.4%.
Financial Condition
As of Jun 30, 2017, ONEOK had cash and cash equivalents of $332.4 million, compared with $248.9 million as of Dec 31, 2016.
Long-term debt (excluding current maturities) was $7,835.6 million as of Jun 30, 2017, down from the 2016-end level of $7,920 million.
For six months ended, the company’s cash flow from operating activities was $642.9 million, up from $531.6 million in the year-ago period.
For the same period, capital expenditures (less allowance for equity funds used during construction) amounted to $195.2 million, down from $333.3 million a year ago period.
ONEOK updated guidance for 2017. Its full-year 2017 net income guidance is expected to be in the range of $635–$795 million, compared with previously announced range of $575–$755 million. The updated guidance reflects the completed merger transaction with ONEOK Partners as well as nonrecurring and transaction-related charges.
Adjusted EBITDA guidance to $1.89–$2.06 billion, compared with previously announced range of $1.87–$2.13 billion. Growth capital expenditures guidance of $450–$550 million, compared with the previously announced range of $380–$480 million, and maintenance capital expenditures in between $130 million and $150 million, compared with the previously announced range of $140–$160 million.
Upcoming Peer Releases
Sempra Energy (SRE - Free Report) is expected to report second-quarter 2017 results on Aug 4. The Zacks Consensus Estimate is pegged at 80 cents.
Vectren Corporation is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 43 cents.
South Jersey Industries, Inc. is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 4 cents.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
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ONEOK (OKE) Earnings Miss Estimates in Q2, Revenues Beat
ONEOK Inc. (OKE - Free Report) reported second-quarter 2017 operating earnings of 33 cents per share, missing the Zacks Consensus Estimate of 45 cents by 26.7%.
Reported earnings also declined 19.5% year over year.
Total Revenue
ONEOK’s total revenue of $2,725.8 million surpassed the Zacks Consensus Estimate of $2,579 million by 5.69%. Revenues also jumped 27.73% from $2,134.1 million in the prior-year quarter.
Quarterly Highlights
In the quarter under review, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $462.3, up 0.5% year over year.
In the second quarter, the company spent $2,091 million on cost of sales and fuel, up 36.9%.
Operating income came in at $316.7 million in the second quarter, up 0.4%.
The company incurred interest expenses of $118.5 million, down 0.4%.
Financial Condition
As of Jun 30, 2017, ONEOK had cash and cash equivalents of $332.4 million, compared with $248.9 million as of Dec 31, 2016.
Long-term debt (excluding current maturities) was $7,835.6 million as of Jun 30, 2017, down from the 2016-end level of $7,920 million.
For six months ended, the company’s cash flow from operating activities was $642.9 million, up from $531.6 million in the year-ago period.
For the same period, capital expenditures (less allowance for equity funds used during construction) amounted to $195.2 million, down from $333.3 million a year ago period.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. Price, Consensus and EPS Surprise | ONEOK, Inc. Quote
Guidance
ONEOK updated guidance for 2017. Its full-year 2017 net income guidance is expected to be in the range of $635–$795 million, compared with previously announced range of $575–$755 million. The updated guidance reflects the completed merger transaction with ONEOK Partners as well as nonrecurring and transaction-related charges.
Adjusted EBITDA guidance to $1.89–$2.06 billion, compared with previously announced range of $1.87–$2.13 billion.
Growth capital expenditures guidance of $450–$550 million, compared with the previously announced range of $380–$480 million, and maintenance capital expenditures in between $130 million and $150 million, compared with the previously announced range of $140–$160 million.
Upcoming Peer Releases
Sempra Energy (SRE - Free Report) is expected to report second-quarter 2017 results on Aug 4. The Zacks Consensus Estimate is pegged at 80 cents.
Vectren Corporation is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 43 cents.
South Jersey Industries, Inc. is expected to report second-quarter 2017 results on Aug 3. The Zacks Consensus Estimate is pegged at 4 cents.
Zacks Rank
ONEOK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>