Revenue Beat: The Williams Companies, Inc. Beat Analyst Estimates By 10%

A week ago, The Williams Companies, Inc. (NYSE:WMB) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Williams Companies beat expectations, with revenue hitting US$3.2b (10% ahead of estimates) and EPS reaching US$0.56 (a 3.4% beat). The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Williams Companies’ nine analysts is for revenues of US$14.1b in 2027. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.1% to US$2.65. Before this earnings report, the analysts had been forecasting revenues of US$14.1b and earnings per share (EPS) of US$2.63 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

Check out our latest analysis for Williams Companies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$85.38. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Williams Companies at US$103 per share, while the most bearish prices it at US$69.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Williams Companies shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Williams Companies’ past performance and to peers in the same industry. The analysts are definitely expecting Williams Companies’ growth to accelerate, with the forecast 8.9% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.4% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Williams Companies is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Williams Companies going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Williams Companies (1 can’t be ignored!) that we have uncovered.

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