WMB Earnings Prediction
The chart below shows how WMB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WMB sees a +0.89% change in stock price 10 days leading up to the earnings, and a +3.20% change 10 days following the report. On the earnings day itself, the stock moves by -0.69%. This data can give you a slight idea of what to expect for the next quarter's release.
WMB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.65B
4.46%
7.42%
Gross Margin
58.84%
-0.49%
-2.26%
Operating Margin
31.46%
-5.27%
-6.79%
Net Margin
27.98%
3.55%
61.92%
EPS
0.58
7.41%
75.76%
No Data Available
WMB Earnings Analysis
Williams Companies Inc. Corporation (WMB.N) Earnings Conference Call
Positive
Record Adjusted EBITDA Growth: 1. Record Adjusted EBITDA: Williams Companies achieved a record adjusted EBITDA of $1.7 billion for Q3 2024, reflecting a 3% year-over-year increase despite low natural gas prices and production curtailments.
Enhanced EBITDA Outlook: 2. Increased Financial Guidance: The company raised its 2024 adjusted EBITDA guidance midpoint by $125 million, now expecting a range of $7 billion to $7.15 billion, demonstrating confidence in future performance.
Exceptional Capital Efficiency: 3. Strong Cash Returns: Williams generated a remarkable 22.9% return on invested capital from 2018 to 2023, nearly double the sector median of 11.9%, highlighting its effective capital management.
Strong Dividend Coverage: 4. Robust Dividend Coverage: The dividend coverage based on available funds from operations (AFFO) was a strong 2.22x for Q3 2024, with a year-to-date coverage of 2.33x, indicating solid financial health.
Pipeline Project Expansion: 5. Significant Growth Projects: The company has 5.3 Bcf per day of contracted gas pipeline projects, including the Southeast Supply Enhancement Project, which is expected to generate EBITDA greater than the entire Northwest pipeline system.
Negative
Natural Gas Price Decline: 1. Lower Natural Gas Prices: The company anticipates that 2024 Henry Hub natural gas prices will likely be around 15% lower than the January 1 strip prices, impacting overall revenue expectations.
Hurricane-Related Financial Impact: 2. Hurricane Impact: The Gulf of Mexico segment experienced total hurricane-related impacts of about $10 million unfavorable in Q3 2024 compared to the previous year, indicating vulnerability to weather events.
Gas Production Shutdowns: 3. Production Curtailments: The company reported approximately 4 Bcf per day of gas currently shut in due to production curtailments, with about 25% of that in the Northeast, which could hinder revenue growth.
Asset Sales Effect on EBITDA: 4. Asset Sales Impact: Adjusted EBITDA growth was unfavorably impacted by asset sales, including a $130 million gain last year on the sale of the Bayou ethane system, which is not included in adjusted performance metrics.
Non-Cash Depreciation Impact: 5. Increased Non-Cash Depreciation: The year-over-year adjusted EPS growth lagged behind adjusted EBITDA growth primarily due to a step-up in non-cash depreciation expense from recent acquisitions, indicating potential pressure on profitability metrics.
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WMB Earning Call Sentiment
Williams Companies, Inc. (WMB) Q3 2024 Earnings Call Transcript
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00:00
00:00
WMB.N
-8.43%Positive
The earnings call summary presents a mixed picture: the company shows strong operational performance with a 5% increase in adjusted EBITDA and a solid dividend coverage ratio. However, concerns arise from flat performance in the Northeast G&P Business and a decline in upstream joint venture operations. The Q&A section reveals some uncertainties regarding pricing and growth targets. The lack of new partnerships or significant positive catalysts, combined with the absence of market cap data, suggests a neutral stock price movement over the next two weeks.