ONE Gas, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

ONE Gas, Inc. (NYSE:OGS) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenue fell 26% shy of analyst expectations, coming in at US$379m. Statutory earnings per share slightly exceeded forecasts at US$0.44 but overall it looks like the analystswere a bit over-enthusiastic on revenues. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from ONE Gas' six analysts is for revenues of US$2.67b in 2026. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.8% to US$4.62. In the lead-up to this report, the analysts had been modelling revenues of US$2.67b and earnings per share (EPS) of US$4.59 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for ONE Gas

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$82.50. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ONE Gas at US$99.00 per share, while the most bearish prices it at US$66.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting ONE Gas' growth to accelerate, with the forecast 10.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.8% 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 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ONE Gas is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on ONE Gas. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ONE Gas going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for ONE Gas (1 is potentially serious!) that we have uncovered.

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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.