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ONEOK (OKE) to Post Q1 Earnings: Is a Beat in the Cards?

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ONEOK, Inc. (OKE - Free Report)  is scheduled to release first-quarter 2019 results on Apr 30, after market close. In the last four quarters, the company delivered average positive earnings surprise of 1.24 %

What Does the Zacks Model Say?

Our proven model shows that ONEOK is likely to beat estimates in the quarter to be reported. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has Earnings ESP of +3.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ONEOK currently carries a Zacks Rank #3. The combination of Zacks Rank #3 and +3.04% ESP makes us confident of earnings beat in the upcoming quarterly results.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions. 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. Price and EPS Surprise | ONEOK, Inc. Quote

Factors at Pay

ONEOK expects Natural Gas Liquids segment to contribute significantly to earnings in 2019. The company expects to recognize a $20-million earnings benefit in the first quarter from the sale of NGL inventories. We believe that the Sterling III and West Texas LPG pipeline expansion projects, which initiated operations in 2018, to drive growth in the segment. 

In the Gathering and Processing segment, Williston Basin processing plants are operating nearly at their full capacity and averaged more than 1 billion cubic feet per day in January. The company expects solid performance in 2019 and projected adjusted EBITDA to increase approximately 10% and 6%, respectively. The above-mentioned factors will make a positive impact on first-quarter results.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2019 earnings per share is pegged at 73 cents. The projected figure suggests year-over-year increase of 14.06%. The consensus estimate for first-quarter 2019 total revenues is pegged at $2.70 billion, calling for year-over-year decline of 12.95%.

Stocks to Consider

Investors can also consider the other stocks from the same sector which also have the right combination of elements, to post an earnings beat in the to-be-reported quarter.

ONE Gas, Inc (OGS - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on Apr 29.

Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on May 1.

Exelon Corporation (EXC - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on May 2.

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