Williams Companies Inc Earnings Cheat Sheet: A Turnaround to a Profit

S&P 500 (NYSE:SPY) component Williams Companies Inc (NYSE:WMB) reported its results for the third quarter. Williams Companies is engaged in finding, producing, gathering, processing and transporting natural gas.

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Williams Companies Inc Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $272 million (46 cents per diluted share) in the quarter. The oil and gas company had a net loss of $1.26 billion or a loss of $2.16 per share in the year earlier quarter.

Actual vs. Wall St. Expectations: WMB reported adjusted net income of 40 cents per share. By that measure, the company fell short of mean estimate of 41 cents per share.

Quoting Management: Alan Armstrong, Williams’ president and chief executive officer, made the following comments: “Our businesses performed exceptionally well across the board in the third quarter, driving a 48-percent increase in our adjusted segment profit. “All of our recent growth projects are beginning to deliver on their potential – from our projects in the Marcellus to Transco expansions along the Eastern seaboard to the deepwater Gulf of Mexico. “We’re also executing on our plan to unlock shareholder value. The E&P separation is on track, and our December dividend will be double the level we paid at this time last year. And we continue to plan on increasing the dividend by 10-15 percent annually.

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by one cent.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 40 cents per share to 36 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.53 a share to $1.51 over the last ninety days.

Competitors to Watch: EQT Corporation (NYSE:EQT), Marathon Oil Corporation (NYSE:MRO), Cheniere Energy, Inc. (AMEX:LNG), Chevron Corporation (NYSE:CVX), Southwestern Energy Co. (NYSE:SWN), Kinder Morgan Energy Partners LP (NYSE:KMP), Occidental Petroleum Corp. (NYSE:OXY), Southern Union Company (NYSE:SUG), and Questar Corporation (NYSE:STR).

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(Source: Xignite Financials)