Analysts are weighing in on how Williams Companies Inc (NYSE:WMB), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.2. The stock is rated as buy by 3 analysts, with 3 outperform and 5 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.
For the current quarter, the 6.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.29 a share, which would compare with $0.15 in the same quarter last year. They have a high estimate of $0.54 and a low estimate of $0.19. Revenue for the period is expected to total nearly $1.91B from $1.84B the year-ago period.
For the full year, 7.00 Wall Street analysts forecast this company would deliver earnings of 0.91 per share, with a high estimate of $2.44 and a low estimate of $0.14. It had reported earnings per share of $0.54 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $7.94B versus 7.36B in the preceding year.
The analysts project the company to maintain annual growth of around 70.80% percent over the next five years as compared to an average growth rate of 8.52% percent expected for its competitors in the same industry.
Among the 8 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for WMB is $26.50 but some analysts are projecting the price to go as high as $38.00. If the optimistic analysts are correct, that represents a 75 percent upside potential from the recent closing price of $21.67. Some sell-side analysts, particularly the bearish ones, have called for $21.00 price targets on shares of Williams Companies Inc (NYSE:WMB).
In the last reported results, the company reported earnings of $0.15 per share, while analysts were calling for share earnings of $0.23. It was an earnings surprise of -34.80%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates through Williams Partners, Williams NGL (natural gas liquids) & Petchem Services, and Other segments. It owns and operates natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area. The company also owns and operates a natural gas pipeline system extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington; gulfstream natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida; and constitution pipeline that would connect its gathering system in Susquehanna County, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in New York. In addition, it provides natural gas gathering, treating, processing, and compression; NGL production, fractionation, storage, marketing, and transportation; deepwater production handling and crude oil transportation; and olefin production services, as well as transports and stores natural gas to local natural gas distribution companies, municipal utilities, direct industrial users, electric power generators, and natural gas marketers and producers. Further, the company extracts, fractionates, treats, stores, and sells ethane/ethylene, propane, propylene, normal butane, isobutene, alky feedstock, and condensate. Additionally, it provides construction management services for third parties. As of December 31, 2015, the company owned and operated approximately 13,600 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.