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Why Is Atmos (ATO) Down 2.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 2.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings and Revenues Beat Estimates
Atmos Energy Corporation posted second-quarter fiscal 2021 earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of $2.05 by 12.2%.
The reported earnings also improved 17.9% from the prior-year figure. The year-over-year improvement in earnings was due to positive rate outcomes in both the segments and customer growth in its distribution segment.
Total Revenues
Total revenues of $1,319.1 million surpassed the Zacks Consensus Estimate of $1,129 million by 16.8%. The top line also increased 34.9% from the year-ago reported figure.
Segment Revenues
Distribution: Revenues from the segment increased 37.5% to $1,282.7 million from $933 million in the prior-year quarter. The improvement was driven by an increase in rates and customer growth.
Pipeline and Storage: Revenues from the segment increased 5.5% to $154.2 million from $146.3 million in the year-ago quarter.
Quarterly Highlights
Purchased gas cost for the quarter was $573.8 million, up 80.5% from the year-ago period. Operation and maintenance expenses for the quarter were $156.4 million, up 5.8% from the year-ago period.
Operating income for the reported quarter was up 15.2% year over year to $381.9 million.
The company incurred interest expenses of $26.1 million, up 17.6% from the year-ago period.
Financial Highlights
As of Mar 31, 2021, Atmos Energy had cash and cash equivalents of $865.3 million compared with $20.8 million on Sep 30, 2020.
Long-term debt was $7.31 billion as of Mar 31, 2021, up from $4.53 billion on Sep 30, 2020.
The company’s cash flow (used in)/from operating activities for the first six months of fiscal 2021 was ($1,402.3) million against $633.8 million recorded in the comparable year-ago period.
It invested $845.7 million in the first six months of fiscal 2021 to strengthen operations. Nearly 87% of the capital spending was associated with system safety and increased reliability of services.
Guidance
Atmos Energy reiterated its fiscal 2021 earnings guidance in the range of $4.90-$5.10 per share. The Zacks Consensus Estimate for fiscal 2021 earnings is $5.05 per share. It expects capital expenditure in the range of $2-$2.2 billion for fiscal 2021.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, Atmos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Atmos (ATO) Down 2.1% 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 2.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings and Revenues Beat Estimates
Atmos Energy Corporation posted second-quarter fiscal 2021 earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of $2.05 by 12.2%.
The reported earnings also improved 17.9% from the prior-year figure. The year-over-year improvement in earnings was due to positive rate outcomes in both the segments and customer growth in its distribution segment.
Total Revenues
Total revenues of $1,319.1 million surpassed the Zacks Consensus Estimate of $1,129 million by 16.8%. The top line also increased 34.9% from the year-ago reported figure.
Segment Revenues
Distribution: Revenues from the segment increased 37.5% to $1,282.7 million from $933 million in the prior-year quarter. The improvement was driven by an increase in rates and customer growth.
Pipeline and Storage: Revenues from the segment increased 5.5% to $154.2 million from $146.3 million in the year-ago quarter.
Quarterly Highlights
Purchased gas cost for the quarter was $573.8 million, up 80.5% from the year-ago period. Operation and maintenance expenses for the quarter were $156.4 million, up 5.8% from the year-ago period.
Operating income for the reported quarter was up 15.2% year over year to $381.9 million.
The company incurred interest expenses of $26.1 million, up 17.6% from the year-ago period.
Financial Highlights
As of Mar 31, 2021, Atmos Energy had cash and cash equivalents of $865.3 million compared with $20.8 million on Sep 30, 2020.
Long-term debt was $7.31 billion as of Mar 31, 2021, up from $4.53 billion on Sep 30, 2020.
The company’s cash flow (used in)/from operating activities for the first six months of fiscal 2021 was ($1,402.3) million against $633.8 million recorded in the comparable year-ago period.
It invested $845.7 million in the first six months of fiscal 2021 to strengthen operations. Nearly 87% of the capital spending was associated with system safety and increased reliability of services.
Guidance
Atmos Energy reiterated its fiscal 2021 earnings guidance in the range of $4.90-$5.10 per share. The Zacks Consensus Estimate for fiscal 2021 earnings is $5.05 per share. It expects capital expenditure in the range of $2-$2.2 billion for fiscal 2021.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, Atmos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.