NYSE$WMB

Williams Companies Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Williams's second-quarter earnings remained consistent with projections, demonstrating the durability of its business amidst significant disruptions.

Williams reported a net income of $303 million, resulting in an EPS of $0.25. Adjusted EBITDA was $1.24 billion, and cash flow from operations reached $1.143 billion, up 7% year-over-year. The company is on track to meet its 2020 guidance expectations.

  • Net income was $303 million, with an EPS of $0.25.
  • Adjusted EBITDA stood at $1.24 billion for the quarter.
  • Cash flow from operations increased by 7% to $1.143 billion.
  • The company is on track to meet its 2020 guidance expectations and continued free cash flow.

Headline financials

Total Revenue

$1.78B

Previous: $2.04B-12.7%
EPS (adj)

$0.25

Previous: $0.26-3.8%
Adjusted EBITDA

$1.24B

Previous: $1.24B-0.1%
Cash Flow from Ops

$1.14B

Previous: $1.07B+6.9%
Dividend Coverage

1.64

Previous: 1.88-12.8%
Debt / Adj EBITDA

4.31

No prior period
Capital Expenditures

-$613M

Previous: -$919M+33.3%
Free Cash Flow

-$310M

Previous: -$609M+49.1%
Net Income

$303M

Previous: $310M-2.3%
Operating Income

$612M

Previous: $498M+22.9%
Gross Profit

$1.46B

Previous: $1.65B-11.7%
Cash & Equivalents

$1.13B

Previous: $806M+40.6%
Total Assets

$45.3B

Previous: $46.5B-2.5%
Stock-Based Comp

$15M

Previous: $16M-6.3%

Revenue & EPS history

Williams · Revenue · Quarterly

$1.78B

Q2 2020-12.7%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

The company continues to expect 2020 Adjusted EBITDA toward the lower end of its previously stated range of between $4.95 billion and $5.25 billion. The company now expects 2020 growth capex of $1 billion to $1.2 billion, down from the original range of $1.1 billion to $1.3 billion. Also, the company now expects Distributable Cash Flow toward the midpoint of the original guidance range due primarily to lower maintenance capital expenditures as well as certain tax benefits expected in the second half of 2020.

Tailwinds

  • Company expects 2020 Adjusted EBITDA toward the lower end of its previously stated range of between $4.95 billion and $5.25 billion.
  • Company expects 2020 growth capex of $1 billion to $1.2 billion, down from the original range of $1.1 billion to $1.3 billion.
  • Company expects Distributable Cash Flow toward the midpoint of the original guidance range.
  • Lower maintenance capital expenditures are expected.
  • Certain tax benefits are expected in the second half of 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.7%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+11.6%

Q2 2020

Best reaction

-10.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-4.7%-4.5%
Q4 2025+1.5%+6.5%+8.4%
Q3 2025-4.3%+0.9%+7.8%
Q2 2025-2.1%-3.9%-4.4%
Q1 2025-2.6%-4.2%+0.6%
Q4 2024+4.8%+5.4%+4.5%
Q3 2024+4.5%+7.3%+7.2%
Q2 2024+1.5%+2.5%+5.3%
Q1 2024+1.1%+2.5%+7.5%
Q4 2023+0.4%+0.8%+8.7%
Q3 2023+4.0%+3.9%+8.4%
Q2 2023+1.0%+1.1%+1.7%
Q1 2023-0.7%+0.9%+3.2%
Q4 2022-1.5%-0.3%-8.4%
Q3 2022+2.4%+2.7%+6.2%
Q2 2022-3.6%-5.5%-0.2%
Q1 2022+3.0%+6.9%+9.2%
Q4 2021-0.4%+3.6%+10.4%
Q3 2021+1.1%+1.7%-5.2%
Q2 2021+0.3%+0.0%-1.6%
Q1 2021+0.9%+3.9%+12.0%
Q4 2020+5.3%+0.9%+3.8%
Q3 2020-1.1%-4.8%+12.8%
Q2 2020+11.6%+9.0%+11.2%
Q1 2020+2.4%+5.0%+11.4%
Q4 2019+2.6%-5.1%-46.3%
Q3 2019-3.9%+0.5%-2.2%
Q2 2019+2.0%-5.0%-5.7%
Q1 2019-3.1%-3.4%-6.9%
Q4 2018+0.5%+2.0%+3.1%
Q3 2018+6.4%+6.3%+4.6%
Q2 2018+4.1%+5.3%-0.5%
Q1 2018+0.5%+1.2%+2.8%
Q4 2017+0.7%-2.9%-8.6%
Q3 2017-1.4%+1.0%+2.8%
Q2 2017-2.1%-2.2%-5.2%
Q1 2017-2.6%+1.0%-4.8%
Q4 2016-3.1%-2.4%-1.1%
Q3 2016-3.7%-3.6%+3.5%
Q2 2016-0.0%+6.9%+16.6%
Q1 2016+6.1%
Q4 2015+6.1%
Q3 2015+2.2%
Q2 2015-0.2%
Q1 2015-1.4%
Q4 2014-0.5%
Q3 2014+1.8%
Q2 2014-2.5%
Q1 2014+2.5%
Q4 2013+3.6%
Q3 2013-4.2%
Q2 2013+6.8%
Q1 2013-4.6%
Q4 2012-3.9%
Q3 2012-3.2%
Q2 2012-2.7%
Q1 2012+4.9%
Q4 2011+2.6%
Q3 2011+5.7%
Q2 2011-10.0%
Q1 2011-0.5%
Q4 2007+2.1%
Q4 2010+2.1%
Q3 2010+3.9%
Q2 2010-0.1%
Q1 2009-9.8%
Q1 2010+1.1%
Q4 2009+1.5%
Q3 2009+3.3%
Q3 2008+3.3%
Q4 2008-2.7%
Q2 2009-2.7%
Q2 2008-2.7%

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