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Atmos Energy (ATO) Q3 Earnings and Revenues Top Estimates

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Atmos Energy Corporation (ATO - Free Report) posted third-quarter fiscal 2022 earnings per share (EPS) of 92 cents, which surpassed the Zacks Consensus Estimate of 86 cents by 7%. The bottom line improved by 17.9% from the year-ago earnings of 78 cents per share.

Revenues

Total revenues of $816.4 million surpassed the Zacks Consensus Estimate of $758 million by 7.7%. The top line increased 34.8% from the year-ago reported figure of $605.6 million.

Atmos Energy Corporation Price, Consensus and EPS Surprise

Atmos Energy Corporation Price, Consensus and EPS Surprise

Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote

Segment Revenues

Distribution: Revenues from the segment increased 38.4% to $773.3 million from $558.8 million in the prior-year quarter.

Pipeline and Storage: Revenues from the segment increased 12.5% to $183.4 million from $163 million in the year-ago quarter.

Highlights of the Release

The purchased gas cost for the quarter was $249.2 million, up 186.8% from the year-ago period. Operation and maintenance expenses for the quarter were $182.3 million, down 1.2% from the year-ago period.

The operating income for the second quarter was up 15.9% year over year to $154.6 million.

Atmos Energy incurred interest expenses of $26.2 million, up 24.8% from the year-ago period.

As of Jun 30, 2022, ATO had cash and cash equivalents of $328.1 million. Net cash flow provided (used in) by operating activities in the first nine months of 2022 was $929.3 million compared with ($1,158.5) million in the year-ago period.

As of Jun 30, 2022, Atmos Energy’s available liquidity was $3.5 billion.

Atmos Energy invested $1,726 million in the nine months ended Jun 30 to strengthen operations. Nearly 87% of capital spending was associated with system safety and increased reliability of services.

Guidance

Atmos Energy reiterated its fiscal 2022 earnings guidance in the range of $5.50-$5.60 per share. The Zacks Consensus Estimate for fiscal 2022 earnings of $5.54 per share is lower than $5.55, the midpoint of the guided range. ATO reiterated its capital expenditure expectation in the range of $2.4-$2.5 billion for fiscal 2022.

Zacks Rank

Atmos Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Dominion Energy (D - Free Report) is scheduled to announce second-quarter 2022 results on Aug 8 before market open. The Zacks Consensus Estimate for earnings is pegged at 77 cents per share. Dominion Energy’s long-term earnings growth is projected at 6.4%.

Hawaiian Electric Industries (HE - Free Report) is scheduled to announce second-quarter 2022 results on Aug 8 after market close. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share. Hawaiian Electric Industries’ long-term earnings growth is projected at 3.2%.

Southwest Gas Holdings (SWX - Free Report) is set to release second-quarter 2022 results on Aug 9 after market close. The Zacks Consensus Estimate for EPS is pegged at 49 cents. Southwest Gas’ long-term earnings growth is projected at 5%.

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