We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Atmos (ATO) Down 3.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Atmos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings Beat Estimates, Sales Up Y/Y
Atmos Energy posted second-quarter fiscal 2024 earnings of $2.85 per share, which surpassed the Zacks Consensus Estimate of $2.62 by 8.8%. The bottom line also improved by 14.9% from the year-ago quarter’s $2.48 per share.
Revenues
Total revenues of $1.65 billion lagged the Zacks Consensus Estimate of $1.78 billion by 7.5%. However, the top line increased 7.1% from the year-ago quarter’s reported number of $1.54 billion.
Segmental Revenues
Distribution: In the second quarter of fiscal 2024, revenues totaled $1.59 billion, highlighting a 6% increase from $1.5 billion in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $223 million, reflecting a 21.2% increase from $184 million in the year-ago quarter.
Highlights of the Release
Operation and maintenance expenses amounted to $199.9 million, up 2.7% from the year-ago quarter’s level.
Operating income totaled $551 million in the reported quarter, up 30.4% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $55.4 million, up 48.1% from the year-ago quarter.
The company reported 176.2 million cubic feet of consolidated distribution throughput for the quarter, up 9.4% from the year-ago quarter’s actual.
Financial Highlights
As of Mar 31, 2024, Atmos Energy reported a strong balance sheet with available liquidity of approximately $4.2 billion.
As of Mar 31, 2024, ATO had cash and cash equivalents of $262.5 million compared with $15.4 million as of Sep 30, 2023.
Net cash flow provided by operating activities in the first six months of fiscal 2024 was $0.99 billion compared with $2.89 billion in the year-ago quarter.
In the first six months of fiscal 2024, the company invested nearly $1.42 billion, with 81% of the amount being invested to improve the safety and reliability of its distribution and transportation systems.
Guidance
Atmos Energy increased its fiscal 2024 earnings guidance in the range of $6.70-$6.80 per share, up from the previous guidance of $6.45-$6.65 per share. The Zacks Consensus Estimate is pegged at $6.60 per share, lower than the company’s guided range.
ATO also raised its fiscal 2024 capital expenditure guidance to $3.1 billion from the previous expectation of $2.9 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Atmos has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Atmos has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Atmos (ATO) Down 3.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Atmos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings Beat Estimates, Sales Up Y/Y
Atmos Energy posted second-quarter fiscal 2024 earnings of $2.85 per share, which surpassed the Zacks Consensus Estimate of $2.62 by 8.8%. The bottom line also improved by 14.9% from the year-ago quarter’s $2.48 per share.
Revenues
Total revenues of $1.65 billion lagged the Zacks Consensus Estimate of $1.78 billion by 7.5%. However, the top line increased 7.1% from the year-ago quarter’s reported number of $1.54 billion.
Segmental Revenues
Distribution: In the second quarter of fiscal 2024, revenues totaled $1.59 billion, highlighting a 6% increase from $1.5 billion in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $223 million, reflecting a 21.2% increase from $184 million in the year-ago quarter.
Highlights of the Release
Operation and maintenance expenses amounted to $199.9 million, up 2.7% from the year-ago quarter’s level.
Operating income totaled $551 million in the reported quarter, up 30.4% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $55.4 million, up 48.1% from the year-ago quarter.
The company reported 176.2 million cubic feet of consolidated distribution throughput for the quarter, up 9.4% from the year-ago quarter’s actual.
Financial Highlights
As of Mar 31, 2024, Atmos Energy reported a strong balance sheet with available liquidity of approximately $4.2 billion.
As of Mar 31, 2024, ATO had cash and cash equivalents of $262.5 million compared with $15.4 million as of Sep 30, 2023.
Net cash flow provided by operating activities in the first six months of fiscal 2024 was $0.99 billion compared with $2.89 billion in the year-ago quarter.
In the first six months of fiscal 2024, the company invested nearly $1.42 billion, with 81% of the amount being invested to improve the safety and reliability of its distribution and transportation systems.
Guidance
Atmos Energy increased its fiscal 2024 earnings guidance in the range of $6.70-$6.80 per share, up from the previous guidance of $6.45-$6.65 per share. The Zacks Consensus Estimate is pegged at $6.60 per share, lower than the company’s guided range.
ATO also raised its fiscal 2024 capital expenditure guidance to $3.1 billion from the previous expectation of $2.9 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Atmos has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Atmos has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.