Last week, you might have seen that The Williams Companies, Inc. (NYSE:WMB) released its second-quarter result to the market. The early response was not positive, with shares down 2.0% to US$32.86 in the past week. Revenues were in line with forecasts, at US$2.5b, although statutory earnings per share came in 12% below what the analysts expected, at US$0.33 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Williams Companies

Taking into account the latest results, Williams Companies' ten analysts currently expect revenues in 2022 to be US$10.7b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 19% to US$1.53. In the lead-up to this report, the analysts had been modelling revenues of US$10.7b and earnings per share (EPS) of US$1.55 in 2022. 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.

There were no changes to revenue or earnings estimates or the price target of US$38.00, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Williams Companies, with the most bullish analyst valuing it at US$41.00 and the most bearish at US$31.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.5% by the end of 2022. This indicates a significant reduction from annual growth of 4.9% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 5.5% per year. So it's pretty clear that Williams Companies' revenues are expected to shrink slower than the wider 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. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations. Their estimates also suggest that Williams Companies' revenues are expected to perform better than the wider industry. The consensus price target held steady at US$38.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Williams Companies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Williams Companies going out to 2024, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Williams Companies you should be aware of, and 1 of them is potentially serious.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.