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Shareholders might have noticed that ONEOK, Inc. (NYSE:OKE) filed its quarterly result this time last week. The early response was not positive, with shares down 6.2% to US$80.93 in the past week. It was not a great result overall. Although revenues beat expectations, hitting US$8.0b, statutory earnings missed analyst forecasts by 15%, coming in at just US$1.04 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, ONEOK's eight analysts are forecasting 2025 revenues to be US$25.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 12% to US$5.44. In the lead-up to this report, the analysts had been modelling revenues of US$27.5b and earnings per share (EPS) of US$5.48 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
View our latest analysis for ONEOK
The average price target was steady at US$108even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ONEOK at US$147 per share, while the most bearish prices it at US$95.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ONEOK's past performance and to peers in the same industry. We would highlight that ONEOK's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that ONEOK is also expected to grow slower than other industry participants.