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ONEOK (OKE) to Report Q1 Earnings: What's in the Offing?

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ONEOK, Inc. (OKE - Free Report) is scheduled to release first-quarter 2020 earnings on Apr 28, 2020, after market close. The company has trailing four-quarter positive earnings surprise of 5.19%, on average.

Let’s see how things are placed ahead of the upcoming quarterly announcement.

Factors to Consider

The construction of ONEOK’s Demicks Lake II plant in the Williston Basin was completed in January. The 900-miles Elk Creek Pipeline project was completed and commissioned for commercial services in December 2019. These are likely to have had a positive impact on ONEOK’s first-quarter earnings. The company anticipates majority of its earnings in 2020 to be fee-based, which is likely to have boosted its performance in the first quarter.

Due to the coronavirus outbreak, the company is expecting lower demand. However, significant inventory of flared natural gas in the Williston Basin and fully-contracted growth in the Permian Basin are likely to have benefited the quarterly results.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2020 sales is pegged at $2.52 billion, which indicates a decline of 9.52% from the year-ago quarter’s figure. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 81 cents per share, which is in line with the year-ago quarter’s reported figure.

ONEOK, Inc. Price and EPS Surprise

 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote

 

What Our Quantitative Model Predicts

Our proven model doesn’t predict an earnings beat for ONEOK this time around. 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. That is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is -1.88%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Spire Inc. (SR - Free Report) is set to release first-quarter 2020 numbers on May 8. It has an Earnings ESP of +0.17% and carries a Zacks Rank #3.

Algonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to release first-quarter results on May 7. It has an Earnings ESP of +3.53% and a Zacks Rank #2.

Duke Energy Corporation (DUK - Free Report) is scheduled to release first-quarter results on May 12. It has an Earnings ESP of +0.68% and a Zacks Rank #3

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