The Williams Companies, Inc. (WMB), headquartered in Tulsa, Oklahoma, operates as an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs), and olefins. With a market cap of $73.9 billion, the company owns and operates midstream gathering and processing assets, and interstate natural gas pipelines. The natural gas giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect WMB to report a profit of $0.41 per share on a diluted basis, down 14.6% from $0.48 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect WMB to report EPS of $1.92, up marginally from $1.91 in fiscal 2023. Its EPS is expected to rise 6.3% year over year to $2.04 in fiscal 2025.
WMB stock has outperformed the S&P 500’s ($SPX) 25.5% gains over the past 52 weeks, with shares up 74.3% during this period. Similarly, it outperformed the Energy Select Sector SPDR Fund’s (XLE) 14.1% gains over the same time frame.
WMB’s outperformance is due to its strategic pipeline network, connecting key markets along the East Coast and in the western U.S. The company is capitalizing on the growing demand for clean energy, with expansion projects and partnerships in the power generation sector, particularly for data centers. WMB’s assets can meet a significant portion of the nation’s natural gas consumption, positioning it for continued growth. Moreover, earnings estimates for 2025 have been revised upwards, reflecting positive developments in the company's operations.
On Nov. 6, WMB shares closed up more than 4% after reporting its Q3 results. Its adjusted EPS of $0.43 beat Wall Street expectations of $0.42. The company’s revenue was $2.7 billion, matching Wall Street forecasts.
Analysts’ consensus opinion on WMB stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” and one recommends a “Strong Sell.” While WMB currently trades above its mean price target of $58.84, the Street-high price target of $70 suggests an upside potential of 18.2%.
