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Atmos Energy (ATO) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
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Atmos Energy Corporation (ATO - Free Report) posted fiscal third-quarter 2023 earnings of 94 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 3.1%. The bottom line improved 2.2% from the year-ago quarter’s level of 92 cents.
The year-over-year increase in earnings was due to rate case outcomes in both Distribution and Pipeline and Storage segments and customer growth in the former segment. This was partially offset by higher operation and maintenance expenses and higher depreciation and property tax expenses owing to increased capital investments.
Revenues
Total revenues of $662.7 million lagged the Zacks Consensus Estimate of $1,014 million by 34.7%. The top line also decreased 18.8% from the year-ago quarter’s reported number of $816.4 million.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Distribution: Revenues in fiscal third-quarter 2023 totaled $616.1 million, indicating a 20.3% decline from $773.3 million in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $208.2 million, implying a 13.5% increase from $183.4 million a year ago.
Highlights of the Release
The purchased gas cost for fiscal third-quarter 2023 totaled $44.6 million, down 82.1% year over year. Operation and maintenance expenses amounted to $195 million, up 7% from the year-ago quarter’s level.
Operating income totaled $169.3 million in the reported quarter, up 9.5% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $31.3 million, up 19.6% year over year.
The company reported 75.3 million cubic feet (MMcf) consolidated distribution throughput for the quarter, down 5.1% from the year-ago quarter’s actual. The Zacks Consensus Estimate for the same was pegged at 83 MMcf for the same time frame.
Consolidated pipeline and storage transportation volumes came in at 172.3 MMcf, up 17.7% year over year. The Zacks Consensus Estimate for the same was pinned at 175 MMcf for the same duration.
Financial Highlights
As of Jun 30, 2023, Atmos Energy reported a strong balance sheet with available liquidity of approximately $3.1 billion.
As of Jun 30, 2023, ATO had cash and cash equivalents of $56.2 million compared with $51.6 million as of Sep 30, 2022. As of Jun 30, 2023, long-term debt was $6,553.6 million compared with $5,760.6 million as of Sep 30, 2022.
Net cash flow provided by operating activities in the first nine months of 2023 was $3,221.5 million compared with $929.3 million in the year-ago period.
Capital expenditures amounted to $2,083.5 million for the first nine months of 2023, with nearly 86% of the amount being related to system safety and reliability investments.
Guidance
Atmos Energy Reaffirmed its fiscal 2023 earnings guidance in the range of $6.00-$6.10 per share. The Zacks Consensus Estimate for the same is pegged at $6.06 per share, a tad higher than the midpoint of the guided range. ATO expects nearly $2.8 billion of capital expenditures in fiscal 2023.
National Fuel Gas Company (NFG - Free Report) reported fiscal third-quarter 2023 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 90 cents by 12.2%.
NFG’s long-term (three to five years) earnings growth rate is 9.81%. It delivered an average earnings surprise of 2.5% in the last four quarters.
Upcoming Releases
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 earnings is pinned at $5.61 per share, implying a year-over-year improvement of 6.5%.
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Atmos Energy (ATO) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
Atmos Energy Corporation (ATO - Free Report) posted fiscal third-quarter 2023 earnings of 94 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 3.1%. The bottom line improved 2.2% from the year-ago quarter’s level of 92 cents.
The year-over-year increase in earnings was due to rate case outcomes in both Distribution and Pipeline and Storage segments and customer growth in the former segment. This was partially offset by higher operation and maintenance expenses and higher depreciation and property tax expenses owing to increased capital investments.
Revenues
Total revenues of $662.7 million lagged the Zacks Consensus Estimate of $1,014 million by 34.7%. The top line also decreased 18.8% from the year-ago quarter’s reported number of $816.4 million.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote
Segmental Revenues
Distribution: Revenues in fiscal third-quarter 2023 totaled $616.1 million, indicating a 20.3% decline from $773.3 million in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $208.2 million, implying a 13.5% increase from $183.4 million a year ago.
Highlights of the Release
The purchased gas cost for fiscal third-quarter 2023 totaled $44.6 million, down 82.1% year over year. Operation and maintenance expenses amounted to $195 million, up 7% from the year-ago quarter’s level.
Operating income totaled $169.3 million in the reported quarter, up 9.5% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $31.3 million, up 19.6% year over year.
The company reported 75.3 million cubic feet (MMcf) consolidated distribution throughput for the quarter, down 5.1% from the year-ago quarter’s actual. The Zacks Consensus Estimate for the same was pegged at 83 MMcf for the same time frame.
Consolidated pipeline and storage transportation volumes came in at 172.3 MMcf, up 17.7% year over year. The Zacks Consensus Estimate for the same was pinned at 175 MMcf for the same duration.
Financial Highlights
As of Jun 30, 2023, Atmos Energy reported a strong balance sheet with available liquidity of approximately $3.1 billion.
As of Jun 30, 2023, ATO had cash and cash equivalents of $56.2 million compared with $51.6 million as of Sep 30, 2022. As of Jun 30, 2023, long-term debt was $6,553.6 million compared with $5,760.6 million as of Sep 30, 2022.
Net cash flow provided by operating activities in the first nine months of 2023 was $3,221.5 million compared with $929.3 million in the year-ago period.
Capital expenditures amounted to $2,083.5 million for the first nine months of 2023, with nearly 86% of the amount being related to system safety and reliability investments.
Guidance
Atmos Energy Reaffirmed its fiscal 2023 earnings guidance in the range of $6.00-$6.10 per share. The Zacks Consensus Estimate for the same is pegged at $6.06 per share, a tad higher than the midpoint of the guided range.
ATO expects nearly $2.8 billion of capital expenditures in fiscal 2023.
Zacks Rank
Atmos Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another Release
National Fuel Gas Company (NFG - Free Report) reported fiscal third-quarter 2023 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 90 cents by 12.2%.
NFG’s long-term (three to five years) earnings growth rate is 9.81%. It delivered an average earnings surprise of 2.5% in the last four quarters.
Upcoming Releases
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 earnings is pinned at $5.61 per share, implying a year-over-year improvement of 6.5%.