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I’m predicting revenues of $3 billion and an EPS number of $0.35. The average analyst estimate is calling for $3.61 billion in revenue and $0.36 on earnings. The precipitous drop in natural gas prices has me a little worried for the guys and that’s what made me a bit more pessimistic than usual. As earnings season continues we haven’t heard much from the utilities companies but we have an important one reporting early this coming week with Oneok (NYSE: OKE ). Oneok has been moving down precipitously with the price of natural gas and I’ve been buying along the way. I selected this stock for my portfolio of thirty back in August of 2014 because I felt it was one of the better growth stocks in the utilities industry at the time. With that said I’d like to make my prediction for Oneok for the fourth quarter of 2014 that the company will be announcing on February 23, 2015 after the market closes. ONEOK INC INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. 2014-12 2014-09 2014-06 2014-03 2013-12 2013-09 Revenue $3,005 $3,120 $3,067 $3,163 $4,140 $3,572 Cost of revenue $2,514 $2,583 $2,571 $2,653 $3,488 $3,011 Gross profit $491 $537 $495 $511 $652 $561 Operating expenses Operation and maintenance $148 $153 $153 $127 $236 $209 Depreciation and amortization $73 $75 $72 $67 $108 $94 Other operating expenses $18 $18 $19 $22 $13 $28 Total operating expenses $239 $246 $244 $217 $357 $331 Operating income $252 $291 $251 $294 $295 $230 Interest Expense $87 $86 $89 $95 $90 $82 Other income (expense) -$14 -$53 $29 $21 $35 $39 Income before income taxes $151 $152 $191 $220 $239 $187 Provision for income taxes $33 $38 $42 $15 $55 $39 Net income from continuing operations $118 $114 $149 $205 $184 $148 Net income from discontinuing ops $0 $0 -$8 $2 Other -$46 -$50 -$79 -$113 -$93 -$85 Net income $73 $64 $62 $94 $91 $62 Net income available to common shareholders $73 $64 $62 $94 $91 $62 Earnings per share Basic $0.35 $0.31 $0.29 $0.45 $0.44 $0.30 Diluted $0.35 $0.31 $0.29 $0.45 $0.43 $0.30 Weighted average shares outstanding Basic 208 209 209 209 206 206 Diluted 210 211 211 210 211 210 I have revenue coming in at $3 billion while the average analyst estimate for the quarter is $3.61 billion with a low of $2.88 billion. So I appear to be a bit pessimistic for the quarter on revenue than the average analyst. I guess I am a bit pessimistic because of the drop in natural gas prices over the past three months. On a GAAP basis I’m predicting earnings to be $0.35 while the average estimate is $0.36 with a low of $0.26. I’m actually a penny below estimates because I’m assuming great operating efficiencies to be realized during the quarter. We’ll have to wait and see what happens in a few days, but one thing is for sure, I have been buying the stock pretty much on a weekly basis since November because I believe it has been unjustly punished. The stock began to rebound at the middle of January and I hope that it can continue the move upwards from here on out. Disclaimer: This article is in no way a recommendation to buy or sell any stock mentioned. This article is meant to serve as a journal for myself as to the rationale of why I bought/sold this stock when I look back on it in the future. These are only my personal opinions and you should do your own homework. Only you are responsible for what you trade and happy investing! Disclosure: The author is long OKE. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article. Are you Bullish or Bearish on ? Bullish Bearish Neutral Results for ( ) Thanks for sharing your thoughts. Submit & View Results Skip to results » Share this article with a colleague Scalper1 News
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