Oil and gas pipeline operator Williams Companies Inc. (NYSE: WMB) has seen its share price add about 38% over the past 12 months. The company’s Transco system, which delivers natural gas from the Gulf Coast region to customers on the Eastern Seaboard, is the nation’s largest-volume natural gas system. The issue for Williams, as with all major pipeline systems, is growth. It is getting ever more difficult to get new lines or significant upgrades approved. Williams reports quarterly results on Monday.
Analysts are bullish on the stock, with 17 of 24 giving the stock a Buy or Strong Buy rating. The other seven rate the shares at Hold. At a share price of around $29.70, the upside potential based on a median price target of $32 is 7.7%. At the high price target of $36, the upside potential is 21.2%.
Analysts expect the company to report fourth-quarter revenue of $2.39 billion, down 3.4% sequentially but up 14.4% year over year. Adjusted EPS are forecast at $0.34, flat sequentially and about 9.7% higher year over year. Current estimates for fiscal 2022 call for EPS of $1.26, up 14.7%, on sales of $9.97 billion, up 29.1%.
The stock trades at 23.5 times expected 2021 EPS, 22.6 times estimated 2022 earnings of $1.32 and 20.9 times estimated 2023 earnings of $1.78 per share. The stock’s 52-week range is $22.18 to $31.02. The company pays an annual dividend of $1.63 (yield of 5.73%). Total shareholder return for the past year was 42%.
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