ONEOK (OKE) To Post Q2 Earnings: Is A Beat In The Cards?

ONEOK, Inc. (NYSE:OKE) is scheduled to release second-quarter 2019 results on Jul 30, after market close. In the last four quarters, the company delivered an average positive earnings surprise of 3.17 %

What Does the Zacks Model Say?

Our proven model shows that ONEOK is likely to beat estimates in the quarter to be reported. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has an Earnings ESP of +0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ONEOK currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +3.04% ESP makes us confident of an earnings beat in the upcoming quarterly results.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Factors at Pay

ONEOK expects higher production in the resource rich region where it has extensive midstream assets. This should boost quarterly revenues. On the bottom-line front, the company is likely to gain from higher percentage of fee-based earnings.

The completed projects should increase company’s gathering, processing along transportation and storage capacity, which are going to have a positive impact on its quarterly results.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter 2019 earnings per share is pegged at 71 cents. The projected figure suggests year-over-year increase of 4.41%. The consensus estimate for second-quarter revenues is pegged at $2.70 billion, calling for year-over-year decline of 8.76%.

Stocks to Consider

Investors can also consider other stocks from the same industry,which also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corp. (NYSE:ETR) has an Earnings ESP of +1.40% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results on Jul 31.

NextEra Energy, Inc. (NYSE:NEE) has an Earnings ESP of +1.41% and a Zacks Rank #3. The company is likely to report second-quarter 2019 results on Jul 24.

The Southern Company (NYSE:SO) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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