Williams to Report Q3 Earnings: What Surprise Awaits Investors?

The Williams Companies, Inc. WMB is set to release third-quarter 2025 results on Nov. 3. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 51 cents per share on revenues of $3.1 billion.

Let’s delve into the factors that might have influenced the oil and gas pipeline operator’s performance in the to-be-reported quarter. But it’s worth taking a look at Williams’ previous-quarter results first.

Highlights of Q2 Earnings & Surprise History

In the last reported quarter, the energy infrastructure provider missed the consensus mark due to the underperformance of the Gas & NGL Marketing Services segment on a year-over-year basis, as well as a rise in total costs and expenses. Williams had reported adjusted earnings per share of 46 cents, missing the Zacks Consensus Estimate of 49 cents. However, revenues of $2.8 billion missed the consensus mark by $277 million due to weakness in the Gas & NGL Marketing Services unit.

WMB beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in one, resulting in an earnings surprise of 2.5%, on average. 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

The Zacks Consensus Estimate for the third-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates an 18.6% rise year over year. The Zacks Consensus Estimate for revenues, however, suggests a 14.8% increase from the year-ago period.

Factors to Consider Ahead of WMB’s Q3 Release

Williams’ Transmission & Gulf of Mexico unit — which includes the company’s crown jewel and the nation’s largest and fastest-growing natural gas pipeline system, Transco — is expected to do well in the to-be-reported quarter. The company has accelerated the timeline for Transco's Southeast Supply Enhancement or SSE project in response to customer needs and growing natural gas demand across the Mid-Atlantic and Southeast markets. This project is the largest ever for WMB from an earnings contribution perspective. The unit is also expected to benefit from the segment’s healthy dynamics in the deepwater business and the benefits associated with various deepwater projects. The Zacks Consensus Estimate for the quarter’s adjusted EBITDA in this segment is pegged at $946 million. The number suggests a 14% increase from a profit of $830 million reported in the year-ago quarter.

But on a bearish note, higher costs might play spoilsport. Investors should know that WMB’s second-quarter total costs and expenses of $1.8 billion increased almost 12% from the year-ago quarter’s figure. This trend is likely to continue in the to-be-reported quarter due to project-related costs and inflationary pressure.

What Does Our Model Say About WMB Stock?

Our proven model predicts an earnings beat for Williams this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. 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 +1.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  

WMB’s Zacks Rank: Williams currently carries a Zacks Rank #3.

Other Stocks With the Favorable Combination

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 +1.11% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 5.You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for Permian Resources’ 2025 revenues indicates 4.6% year-over-year growth. Valued at around $10 billion, Permian Resources’ shares have lost 7.6% in a year.

Marathon Petroleum Corporation MPC presently has an Earnings ESP of +8.68% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov. 4.

Notably, the Zacks Consensus Estimate for Marathon’s 2025 earnings per share indicates 5.3% year-over-year growth. Valued at around $59.7 billion, Marathon’s shares have gained 29.9% in a year.

Devon Energy Corporation DVN has an Earnings ESP of +0.89% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 5.

Notably, the Zacks Consensus Estimate for Devon’s 2025 revenues indicates 7% year-over-year growth. Valued at around $21 billion, Devon’s shares have lost 14.7% in a year.

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

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