Atmos Energy Corporation (ATO - Free Report) 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.
Zacks Rank
Atmos Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
ONEOK Inc. (OKE - Free Report) posted first-quarter 2021 operating earnings of 86 cents per share, surpassing the Zacks Consensus Estimate of 79 cents by 8.9%.
MDU Resources Group (MDU - Free Report) posted first-quarter 2021 operating earnings of 26 cents per share, surpassing the Zacks Consensus Estimate of 20 cents by 30%.
Sempra Energy’s (SRE - Free Report) first-quarter 2021 adjusted earnings per share came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%.
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Atmos Energy Corporation (ATO - Free Report) 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.
Zacks Rank
Atmos Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
ONEOK Inc. (OKE - Free Report) posted first-quarter 2021 operating earnings of 86 cents per share, surpassing the Zacks Consensus Estimate of 79 cents by 8.9%.
MDU Resources Group (MDU - Free Report) posted first-quarter 2021 operating earnings of 26 cents per share, surpassing the Zacks Consensus Estimate of 20 cents by 30%.
Sempra Energy’s (SRE - Free Report) first-quarter 2021 adjusted earnings per share came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year’s 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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