ONEOK Projected Q4 EPS Growth Despite Recent Misses

ONEOK, Inc. aims for Q4 earnings of $1.46 per share, a significant increase of 23.7%. However, declines are expected in fiscal 2024 EPS, which could impact investor expectations.

Date: 23-01-2025

AI Rating: 6

ONEOK, Inc. has a market cap of $64.2 billion and is set to release its fiscal Q4 earnings shortly. The company anticipates a profit of $1.46 per share for the upcoming quarter, which represents a robust growth of 23.7% compared to $1.18 in the same period last year. This positive outlook suggests the potential for improved investor sentiment regarding the stock.

However, it's important to note that, looking ahead to fiscal 2024, analysts project a decline in earnings per share, expecting it to drop to $5.10 from $5.48 in fiscal 2023, reflecting a 6.9% decrease. Nevertheless, there's a forecasted recovery for fiscal 2025, with EPS expected to rebound to $6.01, indicating a growth of 17.8%. This fluctuation in earnings expectations might create volatility in the stock as investors react to both the current and future projections regarding profitability.

Despite having missed expectations in three out of the last four quarters, ONEOK has managed to generate substantial year-over-year growth in key performance indicators. For example, their adjusted EBITDA surged by 52.2% to $1.6 billion, and operating income rose by 52.7% to $1.1 billion, reflecting strong operational improvements. Additionally, the company has increased its 2024 net income guidance to between $2.9 billion and $3.1 billion, along with an enhancement in adjusted EBITDA guidance to $6.5 billion - $6.7 billion, which paints a positive picture for future performance.

The overall analyst view on ONEOK stock is moderately optimistic, with a designation of “Moderate Buy.” Out of 17 analysts covering the stock, the configuration has slightly shifted more bullishly, indicating a potential positive trend that may support the stock price in the near term. As of now, the shares are trading below the average analyst price target of $111.93, which could attract further interest from investors looking for value opportunities amid the recent volatility.

Stocks: OKE