ONEOK, Inc. (NYSE:OKE) Annual Results: Here's What Analysts Are Forecasting For This Year

ONEOK, Inc. (NYSE:OKE) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to US$95.76 in the week after its latest yearly results. Results were roughly in line with estimates, with revenues of US$22b and statutory earnings per share of US$5.17. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for ONEOK

Taking into account the latest results, the current consensus from ONEOK's seven analysts is for revenues of US$26.2b in 2025. This would reflect a sizeable 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 12% to US$5.82. Before this earnings report, the analysts had been forecasting revenues of US$28.0b and earnings per share (EPS) of US$5.96 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of US$111, suggesting the downgrades are not expected to have a long-term impact on ONEOK's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ONEOK analyst has a price target of US$147 per share, while the most pessimistic values it at US$89.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting ONEOK's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ONEOK is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ONEOK. They also downgraded ONEOK's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ONEOK analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with ONEOK , and understanding this should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.