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Atmos Energy (ATO) to Report Q2 Earnings: What's in Store?

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Atmos Energy Corporation (ATO - Free Report) is scheduled to release second-quarter fiscal 2024 results on May 8, after market close. The company delivered a negative earnings surprise of 0.5% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

Atmos Energy’s fiscal second-quarter earnings are likely to have benefited from an expanding customer base. Implementation of new rates in its service regions during the fiscal first quarter is likely to have had a positive impact on revenues.

The company continues to invest systematically and is focused on the modernization of the transmission and distribution systems. This is expected to have boosted its bottom line in the fiscal second quarter.

However, an increase in operation & maintenance expenses, higher interest expenses and higher depreciation & amortization are anticipated to have adversely impacted its bottom-line performance.

Q2 Expectations

The Zacks Consensus Estimate for earnings is pegged at $2.62 per share, indicating a year-over-year increase of 5.7%. The Zacks Consensus Estimate for revenues is pegged at $1.76 billion, indicating a year-over-year increase of 14.5%.

The Zacks Consensus Estimate for consolidated distribution throughput is pegged at 166 million cubic feet (MMcf), up 3.1% year over year. The Zacks Consensus Estimate for consolidated pipeline and storage is pinned at 203 MMcf, up 61.1% year over year.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Atmos Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of earnings beat. That is not the case here, as you will see below.
 

Atmos Energy Corporation Price and EPS Surprise

Atmos Energy Corporation Price and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is -0.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector as these have the right combination of elements to post earnings beat this reporting cycle.

NiSource (NI - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2024 earnings on May 8. It has an Earnings ESP of +1.24% and a Zacks Rank #3 at present.

NI’s long-term (three to five years) earnings growth rate is 6%. The Zacks Consensus Estimate for earnings has increased 1.3% in the past 60 days.

Clean Energy Fuels (CLNE - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on May 9. It has an Earnings ESP of +6.25% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for first-quarter earnings remained unchanged in the past 60 days. The Zacks Consensus Estimate for sales is $106.63 million.

Algonquin Power & Utilities (AQN - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on May 10. It has an Earnings ESP of +2.27% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for first-quarter earnings has decreased 21% in the past 60 days. The Zacks Consensus Estimate for sales is $807 million.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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