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Atmos Energy (ATO) Q3 Earnings Beat Estimates, Revenues Miss
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Atmos Energy Corporation (ATO - Free Report) posted third-quarter fiscal 2021 earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 5.4%.
The reported earnings declined 18.8% from the prior-year figure. Despite a rate increase in both the segments, increased depreciation and property tax expenses, timing of system maintenance, refund of excess deferred income taxes to customers and higher bad debt expense in its distribution segment offset the positives.
Total Revenues
Total revenues of $605.5 million lagged the Zacks Consensus Estimate of $631 million by 4.1%. Nonetheless, the top line increased 22.8% from the year-ago reported figure due to strong contribution from its Distribution segment.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Distribution: Revenues from the segment increased 28.4% to $558.8 million from $435.3 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 3.1% to $162.9 million from $158 million in the year-ago quarter.
Quarterly Highlights
Purchased gas cost for the quarter was $86.9 million, up 232.9% from the year-ago period. Operation and maintenance expenses for the quarter were $184.5 million, up 23.4% from the year-ago period.
Operating income for the reported quarter was down 4.1% year over year to $133.4 million.
The company incurred interest expenses of $20.9 million, up 6.6% from the year-ago period.
Financial Highlights
As of Jun 30, 2021, Atmos Energy had cash and cash equivalents of $524.6 million compared with $20.8 million on Sep 30, 2020.
Long-term debt was $7.12 billion as of Jun 30, 2021, up from $4.53 billion on Sep 30, 2020.
The company’s cash flow (used in)/from operating activities for the first nine months of fiscal 2021 was ($1,158.5) million against $895.5 million recorded in the comparable year-ago period.
It invested $1,357.9 million in the first nine 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 $5.08 per share. It expects capital expenditure in the range of $2-$2.2 billion for fiscal 2021.
ONEOK Inc. (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2021 earnings of 13 cents per share, beating the Zacks Consensus Estimate of 11 cents by 18.2%.
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Atmos Energy (ATO) Q3 Earnings Beat Estimates, Revenues Miss
Atmos Energy Corporation (ATO - Free Report) posted third-quarter fiscal 2021 earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 5.4%.
The reported earnings declined 18.8% from the prior-year figure. Despite a rate increase in both the segments, increased depreciation and property tax expenses, timing of system maintenance, refund of excess deferred income taxes to customers and higher bad debt expense in its distribution segment offset the positives.
Total Revenues
Total revenues of $605.5 million lagged the Zacks Consensus Estimate of $631 million by 4.1%. Nonetheless, the top line increased 22.8% from the year-ago reported figure due to strong contribution from its Distribution segment.
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 28.4% to $558.8 million from $435.3 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 3.1% to $162.9 million from $158 million in the year-ago quarter.
Quarterly Highlights
Purchased gas cost for the quarter was $86.9 million, up 232.9% from the year-ago period. Operation and maintenance expenses for the quarter were $184.5 million, up 23.4% from the year-ago period.
Operating income for the reported quarter was down 4.1% year over year to $133.4 million.
The company incurred interest expenses of $20.9 million, up 6.6% from the year-ago period.
Financial Highlights
As of Jun 30, 2021, Atmos Energy had cash and cash equivalents of $524.6 million compared with $20.8 million on Sep 30, 2020.
Long-term debt was $7.12 billion as of Jun 30, 2021, up from $4.53 billion on Sep 30, 2020.
The company’s cash flow (used in)/from operating activities for the first nine months of fiscal 2021 was ($1,158.5) million against $895.5 million recorded in the comparable year-ago period.
It invested $1,357.9 million in the first nine 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 $5.08 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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
ONEOK Inc. (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2021 earnings of 13 cents per share, beating the Zacks Consensus Estimate of 11 cents by 18.2%.