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Atmos Energy (ATO) to Report Q3 Earnings: What's in Store?

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Atmos Energy Corporation (ATO - Free Report) is scheduled to release third-quarter fiscal 2024 results on Aug 7, after market close. The company delivered an earnings surprise of 8.8% in the last reported quarter.

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

Factors at Play

Atmos Energy continues to benefit from strategic investments and focuses on the modernization of the transmission and distribution systems. This is expected to have boosted its bottom line in the fiscal third quarter.

Earnings are likely to have benefited from an expanding customer base. Implementation of new rates in its service regions during the fiscal third quarter and previous quarters is likely to have had a positive impact on the top line.

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

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.05 per share, indicating a year-over-year increase of 11.7%. The consensus estimate for revenues is pegged at $924.8 million, indicating a year-over-year increase of 39.5%.

The consensus mark for consolidated distribution throughput is pegged at 78.9 million cubic feet (MMcf), up 4.8% year over year. The Zacks Consensus Estimate for consolidated pipeline and storage is pinned at 205.1 MMcf, up 19% 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 an 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 -0.95%. 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.

An Upcoming Release

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

Algonquin Power & Utilities (AQN - Free Report) is likely to come up with an earnings beat when it reports second-quarter earnings on Aug 9. It has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for second-quarter earnings has decreased 11.1% in the past 30 days. The Zacks Consensus Estimate for sales is pinned at $625 million, indicating a year- over-year decline of 0.5%.

Recent Releases

National Fuel Gas Company (NFG - Free Report) reported fiscal third-quarter adjusted operating earnings of 99 cents per share, which surpassed the Zacks Consensus Estimate of 92 cents by 7.6%.

The Zacks Consensus Estimate for fiscal 2024 earnings indicates a year-over-year decline of 1.2%. It delivered an average earnings surprise of 9.8% in the trailing four quarters.

Spire Inc. (SR - Free Report) reported a third-quarter fiscal 2024 loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents.

SR’s long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 0.2% in the trailing four quarters.

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

 

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