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Atmos Energy (ATO) to Report Q1 Earnings: What's in Store?

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Atmos Energy Corporation (ATO - Free Report) is scheduled to release first-quarter fiscal 2024 results on Feb 6, after market close. The company delivered an earnings surprise of 8.1% in the last reported quarter.

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

Factors to Note

Atmos Energy continues to invest systematically. More than 90% of capital investments start earning returns within six months, which is expected to have boosted its bottom line in the first quarter. The company’s top line is expected to have gained from the implementation of new rates in its service regions.

Atmos Energy’s fiscal first-quarter earnings are likely to have benefited from the continued modernization of the distribution systems and an expanding customer base.

However, an increase in operation & maintenance expenses and higher interest expenses are anticipated to have adversely impacted its bottom-line performance in the to-be-reported quarter.

Q1 Expectations

The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $2.09 per share, indicating a year-over-year increase of 9.4%. The consensus mark for revenues is pinned at $1.71 billion, indicating a year-over-year increase of 15.5%.

The Zacks Consensus Estimate for consolidated distribution throughput is pinned at 145.37 million cubic feet (MMcf), up 3.3% year over year.  The Zacks Consensus Estimate for consolidated pipeline and storage is pinned at 206.24 MMcf, up 45.2% year over year.

What the Zacks Model Unveils

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 -1.91%. 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 #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector as these have the right combination of elements to post an earnings beat this reporting cycle.

IDACORP (IDA - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +2.52% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for IDA’s earnings is pegged at 60 cents per share. The company delivered an average earnings surprise of 13.3% in the last four quarters.

The Southern Company (SO - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +2.95% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for SO’s earnings is pegged at 59 cents per share. The company delivered an average earnings surprise of 8.5% in the last four quarters.

NiSource Inc. (NI - Free Report) is likely to report an earnings beat when it announces fourth-quarter results soon. It has an Earnings ESP of +1.92% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for NI’s earnings is pegged at 52 cents per share. The company delivered an average earnings surprise of 5.6% in the last four quarters.

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

 

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