Here's What to Expect From ONEOK's Next Earnings Report

Based in Tulsa, Oklahoma, ONEOK, Inc. (OKE) is an energy company specializing in the gathering, processing, transportation, and storage of natural gas and natural gas liquids. With a market cap of $55.43 billion, ONEOK provides essential midstream services to producers and consumers across North America. The company is scheduled to announce its Q3 earnings after the market closes on Tuesday, Oct. 29.

Ahead of the event, analysts expect OKE to report a profit of $1.26 per share, up 27.3% from $0.99 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in two of the previous four quarters while missing on other two occasions. 

Its adjusted earnings of $1.33 per share for the last quarter surpassed the consensus estimate by 12.7%. ONEOK's Q2 EPS beat was primarily driven by a significant 65.5% year-over-year increase in adjusted EBITDA, reflecting improved operational efficiency and higher natural gas volumes processed.

For fiscal 2024, analysts expect OKE to report an EPS of $5.09, down 7.1% from $5.48 in fiscal 2023. 

OKE stock is up 35.3% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 21.9% gains and the iShares U.S. Energy ETF (IYE) 6.9% returns over the same time frame.

ONEOK's strong performance over the past year was driven by strategic expansion projects and a fee-based revenue model that boosted capacity, efficiency, and financial stability. OKE’s shares closed up more than 4% following its Q2 earnings results on Aug.5. The company posted revenue of $4.89 billion.

The consensus opinion on OKE stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 16 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and six suggest a “Hold.” This configuration is slightly more bullish than three months ago when the stock had eight “Strong Buy” ratings.

Although OKE currently trades above the average analyst price target of $94.13, the Street-high price target of $111 suggests the stock could rally as much as 16.9%.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.