Williams Companies Earnings Preview: What To Expect

With a market cap of around $71 billion, The Williams Companies, Inc. (WMB) is an energy company that processes and transports natural gas. The Tulsa, Oklahoma-based company operates through Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services segments.

The company is expected to release its Q1 2025 earnings after the market closes on Monday, May 5. Ahead of this event, analysts expect WMB to post adjusted earnings of $0.57 per share, a decline of 3.4% from $0.59 per share reported in the same quarter last year. However, the company has surpassed Wall Street’s bottom-line estimates in the past four quarters.

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For fiscal 2025, analysts forecast Williams Companies to report an adjusted EPS of $2.15, an increase of nearly 12% from $1.92 reported in fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to grow 12.1% year-over-year to $2.41 per share.

WMB stock has jumped 50.5% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 5.5% gain and the Energy Select Sector SPDR Fund’s (XLE) 14.9% dip during the same time frame.

Shares of WMB rose 4.8% the next day following the release of its solid Q4 2024 results on Feb. 12. The company posted total revenues of $10.5 billion for the full fiscal year. For Q4, the adjusted EBITDA came in at $1.7 billion, an increase of 3.2% year-over-year, with adjusted EPS of $0.47, beating Wall Street estimates by 4.4%.

Analysts’ consensus view on WMB is moderately optimistic, with a “Moderate Buy” rating overall. Among 20 analysts covering the stock, nine suggest a “Strong Buy,” two recommend a “Moderate Buy,” eight give a “Hold,” and one suggests a “Strong Sell” rating. Its mean price target of $61.42 represents a 5.5% premium to current price levels.

See also <!DOCTYPE html><html lang="en"><head> <meta charset="UTF-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Intel Corporation's Stock Struggles Amidst Earnings Woes</title></head><body> <article> <h2>The Downfall of Intel's Stock Post-Earnings Revelation</h2> <p>Intel Corporation (INTC), known for its stronghold in the semiconductor industry, recently unveiled a challenging second quarter that has left analysts and investors apprehensive about the company's future performance. The disappointing earnings report, marked by revenue declines, substantial job cuts, and the suspension of dividends, has triggered a cascade of lowered price targets and downgrades, casting a somber shadow over Intel's once-sturdy stock standing.</p> <h3><strong>Insight into Intel's Stock</strong></h3> <p>Based in Santa Clara, California, Intel Corporation (INTC) commands a market capitalization of $80.84 billion within the global semiconductor domain. Specializing in the production of an array of computing products like microprocessors, chipsets, and cutting-edge driver assistance systems for autonomous vehicles, Intel has seen a plummet of 62.2% in its year-to-date stock performance, vastly underperforming the general market.</p> <figure class="image"> <img src="https://barchart-news-media-prod.aws.barchart.com/EXCLSV/ed586c1f318b3500d3b3667a89855af6/ad_4nxfouj1hd1aclniwy8xxcngyxurty_fv9qxuk5e9kze39hlsrdflw9er6qazks3mw39ji5zxgylovjajskap25w1lnlm-cbtiepmjnf2f6tsnvupyldujn0fjh1y0rpcar3wf_7f6crng_3lr-yrebit9wnm%3Fkey%3D7fnw1yei4p_5660rqwtl6a"> <figcaption>www.barchart.com</figcaption> </figure> <h3><strong>The Abrupt Plummet of Intel's Shares Post-Q2 Reveal</strong></h3> <p>Following the recent investor call on August 1, Intel reported lower-than-anticipated Q2 results, issuing a lackluster Q3 forecast. Additionally, the tech giant revealed plans for a sizable reduction in its workforce by over 15% and the halting of dividend payments. Subsequently, Intel's shares nosedived by over 26% in the subsequent trading period.</p> <p>In Q2, Intel recorded total revenue of $12.8 billion, a slight 1% drop compared to the previous year, missing estimates by $150 million. While the company witnessed a 4% revenue growth in its Products unit, led by robust client computing gains offsetting modest declines in the data center segment, it failed to match the soaring growth experienced by its competitors in this domain.</p> <p>With the revenue dip year-over-year, the non-GAAP gross margin fell as well, dropping 1.1 percentage points to 38.7%, notably beneath the company's anticipated 43.5% mark. This decline, coupled with a 5% increase in operational expenses, saw the adjusted operating margin shrink to a mere 0.2%, a significant regression from the 3.5% reported in the prior year.</p> <h3><strong>Challenges Ahead: Lunar Lake's Looming Margins and Margin-Recovery Strategies</strong></h3> <p>Intel's woes deepen with the impending release of its Lunar Lake CPU in late Q3, a product lineup that is slated to face margin constraints. The limited adoption of Lunar Lake, influenced by its release timing, poses a significant obstacle to Intel's profit margins, necessitating the company to postpone its 60% margin target until 2026.</p> <p>On a more hopeful note, Intel is counting on its forthcoming 18A process products, like Panther Lake and Clearwater Forest, due to launch in the latter half of 2025, to revamp its profit margins. However, the benefits from these new products and processes are not expected to materialize until 2026.</p> <p>Marked by revenue and margin hurdles alongside substantial capital expenses and a hefty $48 billion debt load, Intel has embarked on an aggressive cost-reduction initiative. This involves a 15% slash in its 110,000-strong workforce, a more than 20% decrease in projected 2024 investments in new infrastructure, with spending now ranging between $25 billion and $27 billion.</p> </article></body></html></div><!DOCTYPE html><html><head><title>Intel Faces Investor Backlash</title></head><body>Intel's Dive into the Abyss: Investor Backlash After Dividend Suspension

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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Williams Companies Earnings Preview: What to Expect