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Why Is Atmos (ATO) Up 1.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Atmos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Atmos Energy’s Q2 Earnings Miss Estimates, Revenues Beat
Atmos Energy Corporation posted second-quarter fiscal 2022 earnings per share of $2.37, which missed the Zacks Consensus Estimate of $2.39 by 0.8%. However, the bottom line improved by 3% from the year-ago earnings of $2.30 per share.
Revenues
Total revenues of $1,649.8 million surpassed the Zacks Consensus Estimate of $1,462 million by 12.9%. The top line increased 25.1% from the year-ago reported figure of $1,319 million.
Segment Revenues
Distribution: Revenues from this segment increased 25.6% to $1,610.5 million from $1,282.7 million in the prior-year quarter.
Pipeline and Storage: Revenues from the segment increased 6.2% to $163.7 million from $154.2 million in the year-ago quarter.
Highlights of the Release
The purchased gas cost for the quarter was $871.4 million, up 51.9% from the year-ago period. Operation and maintenance expenses for the quarter were $163.4 million, up 4.5% from the year-ago period.
The operating income for the first quarter was up 0.9% year over year to $385.1 million.
Atmos Energy incurred interest expenses of $28.9 million, up 10.7% from the year-ago period.
As of Mar 31, 2022, ATO had cash and cash equivalents of $582.5 million. Net cash flow provided by the operating activities in six months (ended Mar 31) was $640.5 million compared with $1,402.2 million in the year-ago period.
As of Mar 31, 2022, Atmos Energy’s available liquidity was $3.5 billion.
Atmos Energy invested $1,190 million in six months (ended Mar 31) to strengthen operations. Nearly 87% of capital spending was associated with system safety and increased reliability of services.
Guidance
Atmos Energy narrowed its fiscal 2022 earnings guidance in the range of $5.50-$5.60 per share. The Zacks Consensus Estimate for fiscal 2022 earnings of $5.50 per share is lower than $5.55, the midpoint of the guided range. ATO reiterated its capital expenditure expectation in the range of $2.4-$2.5 billion for fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Atmos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Atmos (ATO) Up 1.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Atmos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Atmos Energy’s Q2 Earnings Miss Estimates, Revenues Beat
Atmos Energy Corporation posted second-quarter fiscal 2022 earnings per share of $2.37, which missed the Zacks Consensus Estimate of $2.39 by 0.8%. However, the bottom line improved by 3% from the year-ago earnings of $2.30 per share.
Revenues
Total revenues of $1,649.8 million surpassed the Zacks Consensus Estimate of $1,462 million by 12.9%. The top line increased 25.1% from the year-ago reported figure of $1,319 million.
Segment Revenues
Distribution: Revenues from this segment increased 25.6% to $1,610.5 million from $1,282.7 million in the prior-year quarter.
Pipeline and Storage: Revenues from the segment increased 6.2% to $163.7 million from $154.2 million in the year-ago quarter.
Highlights of the Release
The purchased gas cost for the quarter was $871.4 million, up 51.9% from the year-ago period. Operation and maintenance expenses for the quarter were $163.4 million, up 4.5% from the year-ago period.
The operating income for the first quarter was up 0.9% year over year to $385.1 million.
Atmos Energy incurred interest expenses of $28.9 million, up 10.7% from the year-ago period.
As of Mar 31, 2022, ATO had cash and cash equivalents of $582.5 million. Net cash flow provided by the operating activities in six months (ended Mar 31) was $640.5 million compared with $1,402.2 million in the year-ago period.
As of Mar 31, 2022, Atmos Energy’s available liquidity was $3.5 billion.
Atmos Energy invested $1,190 million in six months (ended Mar 31) to strengthen operations. Nearly 87% of capital spending was associated with system safety and increased reliability of services.
Guidance
Atmos Energy narrowed its fiscal 2022 earnings guidance in the range of $5.50-$5.60 per share. The Zacks Consensus Estimate for fiscal 2022 earnings of $5.50 per share is lower than $5.55, the midpoint of the guided range. ATO reiterated its capital expenditure expectation in the range of $2.4-$2.5 billion for fiscal 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Atmos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.