Williams Delivers Solid Q3 Results; Street Says Buy

Energy corporation The Williams Companies, Inc. (WMB) has posted better-than-expected results for the third quarter ended September 30, 2021. The strong results were on the back of robust growth witnessed in total revenues.

Following the earnings, shares of the company appreciated 1.9% to close at $29.09 in the extended trading session on Monday.

WMB reported quarterly revenues of $2.48 billion, up 28% year-over-year. Moreover, the figure surpassed the consensus estimate of $2.1 billion. Total revenues grew on the back of a 210% year-over-year rise in product sales.

Further, the company reported quarterly earnings of $0.34 per share, up 26% from the same quarter last year. The figure also surpassed the consensus estimate of $0.28 per share.

Meanwhile, WMB also provided updated guidance for 2021. It expects adjusted EBITDA to be in the range of $5.5 billion to $5.55 billion. The company expects available funds from operations to be between $4.025 billion to $4.075 billion in 2021.

The CEO of Williams, Alan Armstrong, said, “We achieved exceptional results in the third quarter with Adjusted EBITDA up 12% compared to the same period last year, driven by growth across our three major business segments including another quarter of record gas gathering and transmission volumes, increased revenues from transmission projects and favorable NGL marketing margins.” (See Williams stock chart on TipRanks)

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Last month, Morgan Stanley analyst Devin McDermott reiterated a Hold rating on the stock and raised the price target to $32 from $30, which implies upside potential of 12.1% from current levels.

Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average Williams price target of $30.88 implies upside potential of 8.2% from current levels.

Williams scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 52.1% over the past year.

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