The Gory Details of ONEOK's Earnings Miss

Seth Jayson, The Motley Fool
Updated

ONEOK (NYS: OKE) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), ONEOK missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share dropped.


Margins shrank across the board.

Revenue details
 ONEOK reported revenue of $3.54 billion. The four analysts polled by S&P Capital IQ expected revenue of $3.75 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.54. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.54 for Q1 were 6.9% lower than the prior-year quarter's $0.58 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 11.3%, 190 basis points worse than the prior-year quarter. Operating margin was 7.7%, 210 basis points worse than the prior-year quarter. Net margin was 3.2%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.23 billion. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $14.26 billion. The average EPS estimate is $1.80.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 420 members out of 436 rating the stock outperform, and 16 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give ONEOK a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ONEOK is outperform, with an average price target of $52.70.

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The article The Gory Details of ONEOK's Earnings Miss originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends ONEOK. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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