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Atmos Energy (ATO) Q2 Earnings and Revenues Beat Estimates
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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.
Atmos Energy Corporation Price, Consensus and EPS Surprise
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.
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 (ATO) Q2 Earnings and Revenues Beat Estimates
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.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote
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 >>