Why Is The Williams Companies (WMB) Down 6.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is The Williams Companies due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Williams Companies, Inc. (The) before we dive into how investors and analysts have reacted as of late.Williams Companies Q1 Earnings Beat Estimates, Revenues MissThe Williams Companies reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.Adjusted EBITDA totaled $2.3 billion in the quarter under review, which was up 13.3% year over year. Cash flow from operations amounted to $1.6 billion, up 12% from the corresponding quarter of 2025.Q1 Segmental AnalysisTransmission, Power & Gulf: The segment reported an adjusted EBITDA of $1 billion, up 17.2% from the year-ago quarter’s level. The increase was driven by contributions from Transco’s higher net rates and expansion projects, new Gulf volumes associated with Shenandoah, Whale and Ballymore, and higher storage revenues due to winter storms and higher rates. However, the figure missed the Zacks Consensus Estimate by 0.8%.Northeast G&P: Driven primarily by higher volumes at Ohio Valley Midstream and higher gathering volumes and rates at Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $524 million. This represents a 1.9% increase from $514 million in the year-earlier quarter. It beat the Zacks Consensus Estimate of $513 million.West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $410 million, up 15.8% from the prior-year quarter’s level of $354 million. Strong results were fueled by Louisiana Energy Gateway, which was placed into service, as well as higher gathering volumes, including contributions from the 2025 Rimrock and Saber acquisitions. Moreover, the figure beat the Zacks Consensus Estimate of $389 million.Gas & NGL Marketing Services: The segment posted $227 million in adjusted EBITDA, a year-over-year increase from $155 million, driven by higher gas marketing margins due to winter storms. The figure surpassed the Zacks Consensus Estimate of $150 million.Other: This segment posted an adjusted EBITDA of $83 million, representing a 20.2% decrease from $104 million in the year-earlier quarter, caused by unfavorable changes in net realized results from upstream operations, including the impact of the divested South Mansfield interests. However, the figure beat the Zacks Consensus Estimate of $71 million.Costs, Capex & Balance SheetIn the reported quarter, total costs and expenses of $1.7 billion decreased almost 12.5% from the year-ago quarter’s figure.Total capital expenditure (capex) was $1.3 billion. As of March 31, 2026, the company had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%.2026 GuidanceThe company reaffirmed its 2026 Adjusted EBITDA outlook in the range of $8.05 billion to $8.35 billion. It now projects 2026 growth capital expenditures of $7 billion to $7.6 billion, while maintenance capex is expected to range between $850 million and $950 million. Williams Companies also expects its 2026 leverage ratio to average around 4.1x. In addition, the company raised its annualized dividend by 5% to $2.10 per share for 2026, up from $2 in 2025. The 2026 growth capex and debt-to-adjusted EBITDA guidance exclude certain reimbursable long-lead equipment costs.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.VGM ScoresAt this time, The Williams Companies has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, The Williams Companies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks