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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 2021 results on Aug 4, after the market closes. This natural gas distribution company delivered an earnings surprise of 12.2% 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 in fiscal third-quarter 2021 are anticipated to have benefited from rates worth $160 million enforced in fiscal 2020 and new rates worth $183.5 million implemented as of Jun 15, 2021. Efficient management of expenses is expected to have boosted margins in the fiscal third quarter.

Atmos Energy’s fiscal third-quarter earnings are likely to have benefited from greater demand from the expanding customer base in the distribution segment. Reopening of economic activities is likely to have created more demand from commercial and industrial customer groups as well as boosted earnings.

Expectation

The Zacks Consensus Estimate for third-quarter fiscal 2021 earnings per share is currently pegged at 74 cents, which indicates a decline of 6.3% 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 #2.

Stocks to Consider

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

ONE Gas Inc. (OGS - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 2, after the market closes. It has an Earnings ESP of +0.78% and a Zacks Rank #3, at present.

ONEOK Inc. (OKE - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3, after the market closes. It has an Earnings ESP of +1.78% and a Zacks Rank of 3, at present.

Northwest Natural Holding Company (NWN - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 5. It has an Earnings ESP of +8.33% and a Zacks Rank of 3, at present.