Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Williams (WMB) Q3 Earnings Top, Revenues Lag Estimates

Published 10/30/2016, 10:59 PM
Updated 07/09/2023, 06:31 AM

North American energy firm, Williams Companies Inc. (NYSE:WMB) reported impressive third-quarter 2016 earnings on the back of significant cost reductions and continued improvement in financial performance.

The company reported adjusted earnings from continuing operations of 20 cents per share that surpassed the Zacks Consensus Estimate of 16 cents. However, the bottom line deteriorated from the prior-year figure of 22 cents per share.

For the quarter ended Sep 30, 2016, Williams Companies reported revenues of $1,905 million. The top line missed the Zacks Consensus Estimate of $1,971 million but improved from the year-ago quarter level of $1,799 million.

Segmental Analysis

Williams Partners: This segment reported adjusted operating profit of $1,189 million, up 8.1% from $1,100 million in the year-ago quarter. The upside was largely driven by a reduction in operating and maintenance costs as well as selling, general, and administrative expenses.

Williams NGL & Petchem Services:The unit incurred adjusted operating loss of $13 million, substantially wider than the year-ago quarter loss of $5 million. A significant rise in project development costs resulted in the wider loss.

Other: The segment posted adjusted operating profit of $16 million compared with the year-ago quarter profit of $8 million.

Operating and Maintenance Expenses

Operating and maintenance expenses came in at $394 million as against $403 million in the third quarter of 2015.

Capital Expenditure & Balance Sheet

During the reported quarter, Williams Companies’ capital expenditure was $508 million. As of Sep 30, 2016, the company had long-term debt of $23,932 million, which represents a debt-to-capitalization ratio of 83.6%. Williams Companies has a cash balance of about $77 million.

WILLIAMS COS Price and EPS Surprise

Zacks Rank & Key Picks from the Sector

Williams Companies currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players from the broader energy sector include Enviva Partners, LP (NYSE:EVA) , Ultra Petroleum Corp. (OTC:UPLMQ) and Baker Hughes Incorporated (NYSE:BHI) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.

Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.

In the last four quarters, Baker Hughes posted an average positive earnings surprise of 65.12%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand.Click to see them now>>



BAKER-HUGHES (BHI): Free Stock Analysis Report

WILLIAMS COS (WMB): Free Stock Analysis Report

ENVIVA PARTNERS (EVA): Free Stock Analysis Report

ULTRA PETRO CP (UPLMQ): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.