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Atmos Energy (ATO) to Post Q2 Earnings: What's in the Cards?

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Atmos Energy Corporation (ATO - Free Report) is set to report second-quarter fiscal 2021 results on May 5, after the market closes. This natural gas distribution company delivered an earnings surprise of 8.2% in 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 are anticipated to have benefited from rates worth $160 million implemented in fiscal 2020 and new rates worth $109.8 million implemented till Mar 1, 2021. Cold weather in its service territories and substantial volume of residential customers are likely to have increased the usage of gas by customers and boosted earnings in the to-be-reported quarter.

Atmos Energy’s fiscal second-quarter earnings are likely to have benefited from low financing costs, primarily due to efficient management of long-term debt. The company’s earnings are also likely to have benefited from the expanding customer base and revival of demand due to gradual reopening of economic activities.

Expectation

The Zacks Consensus Estimate for second-quarter fiscal 2021 earnings per share is currently pegged at $2.05, which indicates growth of 5.1% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model does not 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 and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is 0.00%.

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.

Stocks to Consider

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

UGI Corporation  (UGI - Free Report) is scheduled to release fiscal second-quarter 2021 results on May 5. It has an Earnings ESP of +1.74% and a Zacks Rank #3.

CenterPoint Energy (CNP - Free Report) is scheduled to release first-quarter 2021 results on May 6. It has an Earnings ESP of +4.52% and a Zacks Rank #3.

Spire Inc. (SR - Free Report) is scheduled to release fiscal second-quarter 2021 results on May 7. It has an Earnings ESP of +1.16% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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