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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 scheduled to release fiscal 2023 second-quarter results on May 3, after market close. The company delivered a negative earnings surprise of 1.04% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Atmos Energy’s earnings are expected to have benefited from the implementation of new rates in its service territories. The company’s revenues are likely to have gained from positive regulatory outcomes, system modernization spending and a major contribution from residential customers.

However, higher operation and maintenance expenses and interest expenses might have adversely impacted earnings.

Expectations

The Zacks Consensus Estimate for fiscal second-quarter 2023 earnings is pegged at $2.47 per share, indicating a year-over-year increase of 4.22%.

The same for revenues is pinned at $1.85 billion, implying a 12.43% increase year over year.

What Our Quantitative Model Predicts

Our proven model does not conclusively 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.

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 -1.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #3.

Stocks to Consider

Investors may consider the following players from the same sector that have the right combination of elements to come up with an earnings beat for the to-be-reported quarter.

Portland General Electric (POR - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on Apr 28, before market open. It has an Earnings ESP of +5.33% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

POR’s long-term (three to five years) earnings growth rate is pegged at 6.08%. The Zacks Consensus Estimate for POR’s earnings is pinned at 75 cents per share, indicating a year-over-year improvement of 11.94%.

Northwest Natural (NWN - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 4, before market open. It has an Earnings ESP of +5.46% and a Zacks Rank #3 at present.

NWN’s long-term earnings growth rate is pegged at 3.7%. The Zacks Consensus Estimate for the company’s earnings is pinned at $1.93 per share, indicating a year-over-year increase of 7.22%.

Brookfield Renewable Partners (BEP - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5, before market open. It has an Earnings ESP of +115.39% and a Zacks Rank #3 at present.

The bottom-line estimate for BEP is pegged at a loss of 13 cents per unit, implying a year-over-year improvement of 18.75%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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