Williams Cos (WMB) Stock Down as WTI Settles in the Red

NEW YORK (TheStreet) -- Shares of Williams Cos Inc  (WMB) were down 2.77% to $57.31 in afternoon trading Wednesday, along with other energy related stocks after WTI crude slipped to settle in negative territory.

U.S. crude for August settled down 1.21% to $60.27 a barrel, according to CNBC.

At last check, Brent crude for August delivery was down 1.4% to $63.55 a barrel as of 2:51 p.m. ET today, while U.S. crude for August delivery was falling by 1.23% to $60.26 a barrel.

Although the Energy Information Administration reported that U.S. crude stocks fell more than expected, the crude market is being hampered by the situation in Greece, according to Reuters.

In addition, the EIA said gasoline stockpiles rose by 680,000 barrels last week, compared to a fall of 304,000 barrels expected by analysts polled by Thomson Reuters.

Tulsa-based Williams is an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to markets for natural gas, natural gas liquids, and olefins.

Separately, TheStreet Ratings team rates WILLIAMS COS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WILLIAMS COS INC (WMB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 50.00% to $669.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -53.29%.
  • The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 50.52%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.07% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS COS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Despite the weak revenue results, WMB has significantly outperformed against the industry average of 38.7%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • WILLIAMS COS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WILLIAMS COS INC increased its bottom line by earning $2.82 versus $0.64 in the prior year. For the next year, the market is expecting a contraction of 66.3% in earnings ($0.95 versus $2.82).
  • You can view the full analysis from the report here: WMB Ratings Report

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