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Atmos Energy (ATO) Q3 Earnings Top Estimates, Sales Rise Y/Y

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Atmos Energy (ATO - Free Report) posted third-quarter fiscal 2024 earnings of $1.08 per share, which surpassed the Zacks Consensus Estimate of $1.05 by 2.9%. The bottom line also improved 14.9% from the year-ago quarter’s 94 cents.

Revenues

Total revenues of $701.5 million lagged the Zacks Consensus Estimate of $925 million by 24%. However, the top line increased 5.9% from the year-ago quarter’s reported number of $662.7 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

Segmental Revenues

Distribution: Revenues totaled $633.2 million, highlighting a 2.8% increase from $616.1 million in the year-ago quarter.

Pipeline and Storage: Revenues amounted to $250.7 million, reflecting a 20.4% increase from $208.2 million in the year-ago quarter.

Highlights of the Release

Operation and maintenance expenses amounted to $211.3 million, up 8.4% from the year-ago quarter’s level.

Operating income totaled $220.3 million, up 30.1% from the year-ago quarter’s level.

Atmos Energy incurred interest expenses of $41.2 million, up 31.6% from the year-ago quarter’s figure.

The company reported 72.4 million cubic feet of consolidated distribution throughput for the quarter, down 3.8% from the year-ago quarter’s reported actuals.

Financial Highlights

As of Jun 30, 2024, Atmos Energy reported a strong balance sheet with available liquidity of approximately $4.3 billion.

As of Jun 30, 2024, ATO had cash and cash equivalents of $674.6 million compared with $15.4 million as of Sep 30, 2023.

Net cash flow provided by operating activities in the first nine months of fiscal 2024 was $1.4 billion compared with $3.2 billion in the year-ago quarter.

In the first nine months of fiscal 2024, the company invested nearly $2.1 billion, with 82% of the amount allocated for improving the safety and reliability of its distribution and transportation systems.

Guidance

Atmos Energy continues to expect its fiscal 2024 earnings in the range of $6.70-$6.80 per share. The Zacks Consensus Estimate is pegged at $6.77 per share, higher than the company’s guided range.

ATO also reaffirmed its fiscal 2024 capital expenditure guidance at $3.1 billion.

Zacks Rank

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

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