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Atmos Energy (ATO) to Post Q1 Earnings: What's in the Cards?

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Atmos Energy Corporation (ATO - Free Report) is set to report first-quarter fiscal 2022 results on Feb 8, after the market closes. This natural gas distribution company’s earnings were in line with the last reported quarter.

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

Factors at Play

Atmos Energy’s earnings in fiscal first-quarter 2022 benefited from new rates worth $25 million completed on Nov 10, 2021. Efficient management of expenses and outstanding debts are expected to have boosted margins in the fiscal first quarter.

Atmos Energy’s fiscal first-quarter earnings are likely to have benefited from greater demand from the expanding customer base in the distribution segment.

Expectation

The Zacks Consensus Estimate for first-quarter fiscal 2022 earnings per share is currently pegged at $1.86, which indicates an increase of 8.8% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model predicts 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 the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 +0.54%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Atmos Energy currently carries a Zacks Rank #2.

Other Stocks to Consider

Investors can also consider a few other players from the same industry that also have the right combination of elements to post earnings beat for the to-be-reported quarter.

ONE Gas (OGS - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 4, before the market opens. ONE Gas has an Earnings ESP of +0.60% and a Zacks Rank #3 at present.

OGS’ long-term (three to five years) earnings growth is pegged at 5%. The Zacks Consensus Estimate for OGS’ 2022 earnings per share indicates 5.9% year-over-year growth.

South Jersey Industries, Inc. is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 24, before the market opens. South Jersey Industries has an Earnings ESP of +0.89% and a Zacks Rank #3 at present.

South Jersey Industries’ long-term earnings growth is pegged at 5.2%. The Zacks Consensus Estimate for SJI’s 2022 earnings per share suggests a rise of 3.7% year over year.

Sempra Energy (SRE - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results. Sempra Energy has an Earnings ESP of +0.58% and a Zacks Rank #3 at present.

Sempra Energy’s long-term earnings growth is pegged at 5.28%. The Zacks Consensus Estimate for SRE’s 2022 earnings per share implies a 1.6% year-over-year improvement.

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


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