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Williams to Report Q4 Earnings: What Surprise Awaits Investors?
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The Williams Companies, Inc. (WMB - Free Report) is set to release fourth-quarter results on Feb. 12. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 45 cents per share on revenues of $2.9 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced the oil and gas pipeline operator’s performance in the December quarter. But it’s worth taking a look at Williams’ previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the energy infrastructure provider beat the consensus mark on the back of Transmission & Gulf of Mexico and West segments’ strong results. Williams had reported adjusted earnings per share of 43 cents, beating the Zacks Consensus Estimate by a penny. Revenues of $2.7 billion generated by the firm also came in $6 million above the consensus mark.
WMB beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 8.8%, on average. This is depicted in the graph below:
Williams Companies, Inc. (The) Price and EPS Surprise
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 6.3% fall year over year. The Zacks Consensus Estimate for revenues, however, suggests a 3.7% increase from the year-ago period.
Factors to Consider
Williams’ Transmission & Gulf of Mexico unit — which includes the company’s crown jewel and the nation’s largest and fastest-growing natural gas pipeline system, Transco — is expected to have done well in the to-be-reported quarter. Echoing the segment’s healthy dynamics in the deepwater business and benefits associated with accretive acquisitions, the Zacks Consensus Estimate for the quarter’s adjusted EBITDA is pegged at $852 million. The number suggests a 13.3% increase from a profit of $752 million reported in the year-ago quarter.
Additionally, the adjusted EBITDA consensus mark for the Northeast G&P unit — engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions — suggests a slight year-over-year gain. The bullish view is based on an estimated increase in service revenues.
But on a bearish note, higher costs might have played spoilsport. Investors should know that WMB’s third-quarter total costs and expenses of $1.8 billion increased almost 16% from the year-ago quarter’s figure. This trend is likely to have continued in the to-be-reported quarter thanks to project-related costs and inflationary pressure.
What Does Our Model Say?
The proven Zacks model does not conclusively show that The Williams Companies is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.53%.
Zacks Rank: The Williams Companies currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for WMB, here are some firms from the energy space that you may want to consider on the basis of our model:
Antero Resources (AR - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 12.
Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates remarkable 3,778% year-over-year growth. Valued at around $12.3 billion, AR has surged 77.1% in a year.
Comstock Resources (CRK - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 18.
Notably, the Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates remarkable 232.9% year-over-year growth. Valued at around $5.4 billion, CRK has increased 134.8% in a year.
TC Energy (TRP - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 14.
TC Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 12.7%, on average. Valued at around $49 billion, TRP has gained 36% in a year.
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Williams to Report Q4 Earnings: What Surprise Awaits Investors?
The Williams Companies, Inc. (WMB - Free Report) is set to release fourth-quarter results on Feb. 12. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 45 cents per share on revenues of $2.9 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced the oil and gas pipeline operator’s performance in the December quarter. But it’s worth taking a look at Williams’ previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the energy infrastructure provider beat the consensus mark on the back of Transmission & Gulf of Mexico and West segments’ strong results. Williams had reported adjusted earnings per share of 43 cents, beating the Zacks Consensus Estimate by a penny. Revenues of $2.7 billion generated by the firm also came in $6 million above the consensus mark.
WMB beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 8.8%, on average. This is depicted in the graph below:
Williams Companies, Inc. (The) Price and EPS Surprise
Williams Companies, Inc. (The) price-eps-surprise | Williams Companies, Inc. (The) Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 6.3% fall year over year. The Zacks Consensus Estimate for revenues, however, suggests a 3.7% increase from the year-ago period.
Factors to Consider
Williams’ Transmission & Gulf of Mexico unit — which includes the company’s crown jewel and the nation’s largest and fastest-growing natural gas pipeline system, Transco — is expected to have done well in the to-be-reported quarter. Echoing the segment’s healthy dynamics in the deepwater business and benefits associated with accretive acquisitions, the Zacks Consensus Estimate for the quarter’s adjusted EBITDA is pegged at $852 million. The number suggests a 13.3% increase from a profit of $752 million reported in the year-ago quarter.
Additionally, the adjusted EBITDA consensus mark for the Northeast G&P unit — engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions — suggests a slight year-over-year gain. The bullish view is based on an estimated increase in service revenues.
But on a bearish note, higher costs might have played spoilsport. Investors should know that WMB’s third-quarter total costs and expenses of $1.8 billion increased almost 16% from the year-ago quarter’s figure. This trend is likely to have continued in the to-be-reported quarter thanks to project-related costs and inflationary pressure.
What Does Our Model Say?
The proven Zacks model does not conclusively show that The Williams Companies is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.53%.
Zacks Rank: The Williams Companies currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for WMB, here are some firms from the energy space that you may want to consider on the basis of our model:
Antero Resources (AR - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 12.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates remarkable 3,778% year-over-year growth. Valued at around $12.3 billion, AR has surged 77.1% in a year.
Comstock Resources (CRK - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 18.
Notably, the Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates remarkable 232.9% year-over-year growth. Valued at around $5.4 billion, CRK has increased 134.8% in a year.
TC Energy (TRP - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 14.
TC Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 12.7%, on average. Valued at around $49 billion, TRP has gained 36% in a year.