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Will ONEOK Inc. (OKE) Beat Earnings Estimates this Quarter?


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We expect diversified energy company ONEOK Inc. OKE to beat expectations when it reports third-quarter 2015 results on Nov 3, 2015, after market closes. In the prior quarter, the company reported a negative earnings surprise of 2.70%. Let's see how things are turning out for the third quarter.

Why a Likely Positive Surprise?

Our proven model shows that ONEOK is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP:  Earnings ESP , which represents the difference between the Most Accurate estimate of 40 cents and the Zacks Consensus Estimate of 38 cents, is at +5.26%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.

Zacks #3 Rank (Hold): Note that stocks with Zacks Ranks of #1 (Strong Buy), #2 (Buy) and #3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement. 

The combination of ONEOK's Zacks Rank #3 and +5.26% ESP makes us confident of a positive earnings beat this season.

What is Driving Better-than-Expected Earnings?

The financial strength, diversified operations, excellent market connectivity, and systematic investments in organic projects of ONEOK Partners, L.P. OKS provide ONEOK Inc. a distinct competitive advantage.

ONEOK Inc. remains focused on maximizing profit by leveraging and enhancing its existing assets, and simultaneously integrating new assets with existing ones in order to complement and strengthen its business.

Other Stocks to Consider

ONEOK Inc. is not the only firm looking up this earnings season. We also see likely earnings beats coming from these two industry peers:

TC PipeLines, LP TCP has an Earnings ESP of +10.71% and a Zacks Rank #3 (Hold).

Spectra Energy Partners, LP SEP has an Earnings ESP of +10.67% and a Zacks Rank #3.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ONEOK PARTNERS (OKS): Free Stock Analysis Report

ONEOK INC (OKE): Free Stock Analysis Report

SPECTRA EGY PTR (SEP): Free Stock Analysis Report

TC PIPELINES (TCP): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Business , Investing , Earnings , Stocks
Referenced Symbols: OKE , TCP




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