What's in Store for Williams Companies Stock in Q2 Earnings?

Williams Companies, Inc. WMB is set to release second-quarter 2025 earnings on Aug. 4, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share and the same for revenues is pinned at $3.06 billion.

Let us delve into the factors that might have influenced WMB’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of WMB’s Q1 Earnings and & Surprise History

In the last reported quarter, the Tulsa, OK-based oil and gas storage and transportation service company’s adjusted earnings beat the consensus mark.  WMB reported adjusted earnings of 60 cents per share, which was 5 cents higher than the Zacks Consensus Estimate.  The performance can be attributed to the strong results delivered by the company’s Transmission & Gulf of America, Northeast G&P and West segments.  However, revenues of $3 billion missed the Zacks Consensus Estimate by $93 million. 

WMB’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 6.54%.

This is depicted in the graph below:

Williams Companies, Inc. (The) Price and EPS Surprise

Williams Companies, Inc. (The) price-eps-surprise | Williams Companies, Inc. (The) Quote

Trend in Estimate Revision for WMB Stock

The Zacks Consensus Estimate for second-quarter 2025 earnings has seen no upward revision and five downward revisions in the past 30 days.  The estimated figure indicates a 13.95% year-over-year increase. The Zacks Consensus Estimate for revenues implies an increase of 30.92% from the year-ago period’s reported actuals.

Factors to Consider Ahead of WMB’s Q2 Release

The premier energy infrastructure provider in North America primarily makes money by owning and operating midstream energy infrastructure, including natural gas pipelines, processing plants and storage facilities.  Revenues are generated through fees charged for transporting, processing, and storing natural gas and related products for producers and utilities. This stable fee-based business model provides steady cash flow, supported by long-term contracts and volume commitments.

WMB's revenues are likely to have improved in the quarter to be reported. The Zacks Consensus Estimate for revenues is pegged at $3.06 billion, up 30.8% from $2.34 billion in the year-ago quarter. The increase can be attributed to significant contributions from both service revenues and product sales. We expect second-quarter service revenues to increase 16.1% year over year, while product sales are projected to rise 74.6%.

Despite a 20.9% decline in oil prices during the quarter, WMB’s results are likely to remain resilient. Given its minimal direct exposure to crude oil, the company is less sensitive to oil price fluctuations. Instead, its performance is primarily tied to natural gas. A more than 50% increase in Henry Hub natural gas prices (to $3.19 per MMBtu) has created a favorable environment, spurring increased production. This trend is expected to have driven higher throughput across WMB’s gathering, processing, and transmission systems, supporting fee-based revenue growth and reinforcing the company’s positive outlook.

On the other hand, rising costs are likely to have weighed on the company’s bottom-line results. This trend was evident in the first quarter of 2025, and is expected to have persisted in the second quarter, driven by increases in product costs, net processing commodity expenses, operating and maintenance expenses, depreciation, depletion, and amortization, as well as selling, general, and administrative expenses.

What Does Our Model Predict About WMB?

Our proven model predicts an earnings beat for Williams Companies this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

WMB’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +0.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank of WMB:  WMB currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Permian Resources Corporation PR has an Earnings ESP of +3.51% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on Aug. 8. Valued at around $11.51 billion, Permian Resources’ shares have lost 6% in a year. Permian Resources is an independent oil and natural gas company based in Midland, TX, specializing in acquiring, optimizing, and developing profitable oil and natural gas properties. It operates exclusively in the core of the Delaware Basin, a prime area within the larger Permian Basin.

Canadian Natural Resources Limited CNQ has an Earnings ESP of +4.89% and a Zacks Rank #3 at present. Valued at around $66.78 billion, Canadian Natural Resources’ shares have lost 6.7% in a year.

The firm is scheduled to release earnings on Aug. 7. Canadian Natural Resources is a major global independent crude oil and natural gas producer based in Calgary, AB. The company holds a diverse portfolio of assets, including conventional and unconventional oil, natural gas, and oil sands operations primarily across Western Canada, as well as offshore ventures in the UK North Sea and Africa.

XPLR Infrastructure, LP XIFR has an Earnings ESP of +32.50% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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