With a market cap of $64.2 billion, ONEOK, Inc. (OKE) is a leading energy company specializing in gathering, processing, storing, transporting, and marketing natural gas and natural gas liquids (NGL) across the United States. Based in Tulsa, Oklahoma, the company serves a diverse range of customers through its integrated midstream infrastructure and operations. OKE is slated to announce its fiscal Q4 earnings results on Monday, Feb. 24.
Ahead of this event, analysts expect the natural gas company to report a profit of $1.46 per share, a 23.7% growth from $1.18 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in one of the past four quarters while missing on three other occasions. OKE missed the consensus EPS estimate by a 4.1% margin in the most recent quarter.
For fiscal 2024, analysts expect OKE to report EPS of $5.10, marking a decline of 6.9% from $5.48 in fiscal 2023. Nevertheless, EPS is expected to rebound in fiscal 2025, anticipating a 17.8% year-over-year growth, reaching $6.01.
Shares of ONEOK have outpaced the broader markets over the past 52 weeks, surging 54.4%, while the broader S&P 500 Index ($SPX) has risen 25.7%, and the Energy Select Sector SPDR Fund (XLE) has returned 15.5% on a YTD basis.
Despite reporting weaker-than-expected Q3 EPS of $1.18 and revenue of $5 billion on Oct. 29, ONEOK shares fell marginally the next day due to robust year-over-year growth. Adjusted EBITDA surged 52.2% to $1.6 billion, and operating income rose 52.7% to $1.1 billion, reflecting strong operational improvements. Furthermore, the company raised its 2024 net income guidance to $2.9 billion - $3.1 billion and adjusted EBITDA guidance to $6.5 billion - $6.7 billion, highlighting a positive outlook.
Analysts' consensus view on OKE stock remains moderately optimistic, with a "Moderate Buy" rating overall. Out of 17 analysts covering the stock, nine recommend a "Strong Buy," two "Moderate Buys," and six give a "Hold" rating. This configuration is slightly more bullish than three months ago, with eight analysts suggesting a "Strong Buy."
As of writing, OKE is trading below the average analyst price target of $111.93.
