ONEOK Inc. (NYSE:OKE) is a prominent player in the energy sector, primarily involved in the gathering, processing, storage, and transportation of natural gas. As a key player in the industry, OKE faces competition from other energy companies like Kinder Morgan and Williams Companies. The company is set to release its quarterly earnings on February 24, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $1.46 and projected revenue of $6.73 billion.
For the quarter ending December 2024, OKE is expected to report an EPS of $1.45, reflecting a significant 22.9% increase from the previous year. This growth is supported by anticipated revenues of $6.56 billion, marking a 25.2% year-over-year increase. Despite this positive outlook, the consensus EPS estimate has been revised downward by 0.9% over the past 30 days, indicating a reassessment by analysts.
Such revisions in earnings estimates are crucial as they often influence investor reactions and the short-term price performance of a stock. Empirical research shows a strong correlation between these trends and stock price movements. The upcoming earnings report could significantly impact OKE's stock movement, depending on whether the actual results surpass or fall short of expectations.
OKE's financial metrics provide insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 20.6, a price-to-sales ratio of about 3.1, and an enterprise value to sales ratio of around 4.48. Its enterprise value to operating cash flow ratio is approximately 18.26, and the earnings yield is roughly 4.85%. These figures help investors assess the company's valuation and profitability.
Additionally, OKE's debt-to-equity ratio is about 1.66, indicating its leverage level, while the current ratio is approximately 0.81, reflecting its short-term liquidity position. These metrics are essential for understanding the company's financial health and ability to meet its obligations. The management discussion during the earnings call will be crucial in assessing the sustainability of any immediate price changes and future earnings projections.
