Back to top

Image: Bigstock

Atmos Energy (ATO) to Post Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Atmos Energy Corporation (ATO - Free Report) is set to report fourth-quarter fiscal 2020 results on Nov 11, after the market closes. This natural gas distribution company delivered an earnings surprise of 3.95% 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 pace of re-opening of economies slowed down in some of the states in which the company operates to curb the coronavirus spread, which is likely to have impacted non-residential customers in the fiscal fourth quarter. The non-residential customer group accounts for 43% of revenues. However, extended stay-at-home directives are expected to have increased demand from the residential group, which accounts for 57% of revenues. This is likely to have offset the demand decline from the non-residential group.
New rates amounting to $145.5 million implemented in Atmos Energy’s service territories are likely to have positively impacted fiscal fourth-quarter earnings.


The Zacks Consensus Estimate for earnings per share for fourth-quarter fiscal 2020 is currently pegged at 52 cents, which indicates growth of 6.1% from the year-ago reported figure.

Atmos Energy Corporation Price and EPS Surprise

Atmos Energy Corporation Price and EPS Surprise

Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote

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.

Earnings ESP: The company’s Earnings ESP is +1.92%.

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 #3.

Another Stock to Consider

Investors can also consider another player from the same sector that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Spire Inc. (SR - Free Report) is scheduled to release fiscal fourth-quarter 2020 results on Nov 18. It has an Earnings ESP of +6.75% and a Zacks Rank #3.

Other Releases

National Fuel Gas Company (NFG - Free Report) posted fourth-quarter fiscal 2020 operating earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 34 cents by 17.7%.

ONE Gas Inc. (OGS - Free Report) reported third-quarter 2020 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 8.3%.

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.

See these 7 breakthrough stocks now>>