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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 set to report third-quarter fiscal 2020 results on Aug 5, after the market closes. This natural gas distribution company delivered an earnings surprise of 0.5% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
The unprecedented economic crisis due to the novel coronavirus outbreak is expected to have lowered distribution revenues from the non-residential customer group, which historically accounts for 41% of revenues. However, extended stay-at-home directives are expected to have increased demand from the residential group, which accounts for 59% of revenues. This is likely to have offset the decline from the non-residential group.
New rates amounting to $58.2 million implemented in Atmos Energy’s service territories are likely to have positively impacted fiscal third-quarter earnings. The company decided to temporarily suspend natural gas disconnections for customers in financial distress due to the novel coronavirus outbreak. This may have had a minor impact on fiscal third-quarter earnings.
Expectation
The Zacks Consensus Estimate for earnings per share for third-quarter fiscal 2020 is currently pegged at 77 cents, which indicates growth of 13.2% from the year-ago reported figure.
What Our Quantitative Model Predicts
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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The company’s Earnings ESP is -2.28%.
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 #4 (Sell).
Stocks to Consider
Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Essential Utilities (WTRG - Free Report) is scheduled to release second-quarter 2020 results on Aug 5. It has an Earnings ESP of +7.74% and a Zacks Rank #2.
Southwest Gas Holdings (SWX - Free Report) is scheduled to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +41.77% and a Zacks Rank #3.
CenterPoint Energy (CNP - Free Report) is scheduled to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +7.87% and a Zacks Rank #3.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
ATO Quick QuoteATO - Free Report) %20fiscal%20third-quarter%20earnings%20are%20likely%20to%20have%20benefited%20from%20higher%20residential%20demand%20and%20new%20rates%20implemented%20in%20its%20service%20territories.">See these 7 breakthrough stocks now>>
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Atmos Energy (ATO) to Report Q3 Earnings: What's in Store?
Atmos Energy Corporation (ATO - Free Report) is set to report third-quarter fiscal 2020 results on Aug 5, after the market closes. This natural gas distribution company delivered an earnings surprise of 0.5% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
The unprecedented economic crisis due to the novel coronavirus outbreak is expected to have lowered distribution revenues from the non-residential customer group, which historically accounts for 41% of revenues. However, extended stay-at-home directives are expected to have increased demand from the residential group, which accounts for 59% of revenues. This is likely to have offset the decline from the non-residential group.
New rates amounting to $58.2 million implemented in Atmos Energy’s service territories are likely to have positively impacted fiscal third-quarter earnings. The company decided to temporarily suspend natural gas disconnections for customers in financial distress due to the novel coronavirus outbreak. This may have had a minor impact on fiscal third-quarter earnings.
Expectation
The Zacks Consensus Estimate for earnings per share for third-quarter fiscal 2020 is currently pegged at 77 cents, which indicates growth of 13.2% from the year-ago reported figure.
What Our Quantitative Model Predicts
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. 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-eps-surprise | Atmos Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is -2.28%.
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 #4 (Sell).
Stocks to Consider
Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Essential Utilities (WTRG - Free Report) is scheduled to release second-quarter 2020 results on Aug 5. It has an Earnings ESP of +7.74% and a Zacks Rank #2.
Southwest Gas Holdings (SWX - Free Report) is scheduled to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +41.77% and a Zacks Rank #3.
CenterPoint Energy (CNP - Free Report) is scheduled to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +7.87% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
ATO Quick QuoteATO - Free Report) %20fiscal%20third-quarter%20earnings%20are%20likely%20to%20have%20benefited%20from%20higher%20residential%20demand%20and%20new%20rates%20implemented%20in%20its%20service%20territories.">See these 7 breakthrough stocks now>>