Oneok Inc. Sees Positive EPS and Revenue Forecasts Ahead

Oneok Inc. is set to report promising earnings, with a forecasted EPS of $1.26, up 27.27% year-over-year, alongside a substantial revenue increase. Despite recent stock fluctuations, analysts remain optimistic about its performance, particularly its forecasted growth in revenue.

Date: 11-09-2024

AI Rating: 7

Oneok Inc. (OKE) is preparing for an upcoming earnings release, and investors are closely monitoring its potential stock price impact. The forecasted Earnings Per Share (EPS) of $1.26 signifies a robust 27.27% increase from the same quarter in the previous year. This increase could positively influence investor sentiment and stock performance.

Moreover, the anticipated quarterly revenue of $5.85 billion represents a significant 39.64% growth year-over-year, which could reflect strong demand or effective operational strategies, further bolstering the stock price expectations.

For the entire fiscal year, analysts predict an annual EPS of $5.07, albeit showing a decrease of 7.48% from the previous year. However, the forecasted revenue of $21.91 billion indicates an encouraging 23.96% growth, showing a potentially strong recovery and resilience in business performance.

The Zacks Consensus Estimates also indicate a bright spot in business operation confidence, as upward estimate revisions for Oneok reflect analysts' positivity. Such revisions are closely linked to stock performance, suggesting that maintaining watch on these changes could be beneficial for investors.

On a valuation perspective, Oneok’s Forward P/E ratio of 18.14 is higher than the industry's average Forward P/E of 12.03, signaling potential overvaluation in comparison to peers. Additionally, the PEG ratio of 4.56 indicates that while the company has anticipated earnings growth, it appears to be priced at a premium compared to industry norms, where the average PEG ratio is 1.47.

Overall, while the forecast suggests strong revenue growth, Oneok’s premium valuations and mixed EPS outlook may lead to cautious optimism among investors, warranting continuous attention to analytics and revisions.

Stocks: OKE