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Atmos Energy (ATO) Q1 Earnings and Revenues Miss Estimates
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Atmos Energy (ATO - Free Report) posted first-quarter fiscal 2024 earnings of $2.08 per share, which missed the Zacks Consensus Estimate of $2.09 by 0.47%. However, the bottom line improved by 8.9% from the year-ago quarter’s $1.91 per share.
The year-over-year increase in earnings was due to rate-case outcomes in both the Distribution and Pipeline and Storage segments and customer growth in the Distribution segment. This was partially offset by increased depreciation expenses and higher interest expenses.
Revenues
Total revenues of $1.15 billion lagged the Zacks Consensus Estimate of $1.71 billion by 32.7%. The top line also decreased 22.3% from the year-ago quarter’s reported number of $1.48 billion.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Distribution: Revenues in the first quarter of fiscal 2024 totaled $1.1 billion, highlighting a 23.61% decline from $1.44 billion in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $211 million, reflecting a 12.83% increase from $187 million in the year-ago quarter.
Highlights of the Release
Operation and maintenance expenses amounted to $166.34 million, down 10% from the year-ago quarter’s level.
Operating income totaled $399.1 million in the reported quarter, up 24.26% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $51.87 million, up 41.1% from the year-ago quarter.
The company reported 123.21 million cubic feet of consolidated distribution throughput for the quarter, down 12.41% from the year-ago quarter’s actual.
Financial Highlights
As of Dec 31, 2023, Atmos Energy reported a strong balance sheet with available liquidity of approximately $3.2 billion.
As of Dec 31, 2023, ATO had cash and cash equivalents of $278.3 million compared with $15.4 million as of Sep 30, 2023.
Net cash flow provided by operating activities in the first quarter of fiscal 2024 was $245.28 million compared with $188.9 million in the year-ago quarter.
In the fiscal first quarter, the company invested $770 million, with nearly 82% of the amount being invested to improve the safety and reliability of its distribution and transportation systems.
The board of directors approved an 8.8% increase in the quarterly dividend rate to 80.5 cents per share.
Guidance
Atmos Energy provided fiscal 2024 earnings guidance in the range of $6.45-$6.65 per share. The Zacks Consensus Estimate is pegged at $6.57 per share, higher than $6.55, the midpoint of the guided range.
ATO expects to invest $2.9 billion in fiscal 2024.
ONE Gas (OGS - Free Report) to report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, suggesting a year-over-year decline of 2.44%.
The Zacks Consensus Estimate for OGS’ 2023 earnings is pegged at $4.14 per share, implying a year-over-year decline of 1.47%.
Sempra Energy (SRE - Free Report) to report fourth-quarter 2023 results on Feb 27 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.13 per share, calling for a year-over-year decline of 4.24%.
The Zacks Consensus Estimate for SRE’s 2023 earnings is pegged at $4.59 per share, implying a year-over-year decline of 0.43%.
Northwest Natural (NWN - Free Report) will report fourth-quarter 2023 results on Feb 23 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating a year-over-year decline of 4.41%.
The Zacks Consensus Estimate for NWN’s 2023 earnings is pegged at $2.68 per share, implying a year-over-year increase of 5.51%.
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Atmos Energy (ATO) Q1 Earnings and Revenues Miss Estimates
Atmos Energy (ATO - Free Report) posted first-quarter fiscal 2024 earnings of $2.08 per share, which missed the Zacks Consensus Estimate of $2.09 by 0.47%. However, the bottom line improved by 8.9% from the year-ago quarter’s $1.91 per share.
The year-over-year increase in earnings was due to rate-case outcomes in both the Distribution and Pipeline and Storage segments and customer growth in the Distribution segment. This was partially offset by increased depreciation expenses and higher interest expenses.
Revenues
Total revenues of $1.15 billion lagged the Zacks Consensus Estimate of $1.71 billion by 32.7%. The top line also decreased 22.3% from the year-ago quarter’s reported number of $1.48 billion.
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 the first quarter of fiscal 2024 totaled $1.1 billion, highlighting a 23.61% decline from $1.44 billion in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $211 million, reflecting a 12.83% increase from $187 million in the year-ago quarter.
Highlights of the Release
Operation and maintenance expenses amounted to $166.34 million, down 10% from the year-ago quarter’s level.
Operating income totaled $399.1 million in the reported quarter, up 24.26% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $51.87 million, up 41.1% from the year-ago quarter.
The company reported 123.21 million cubic feet of consolidated distribution throughput for the quarter, down 12.41% from the year-ago quarter’s actual.
Financial Highlights
As of Dec 31, 2023, Atmos Energy reported a strong balance sheet with available liquidity of approximately $3.2 billion.
As of Dec 31, 2023, ATO had cash and cash equivalents of $278.3 million compared with $15.4 million as of Sep 30, 2023.
Net cash flow provided by operating activities in the first quarter of fiscal 2024 was $245.28 million compared with $188.9 million in the year-ago quarter.
In the fiscal first quarter, the company invested $770 million, with nearly 82% of the amount being invested to improve the safety and reliability of its distribution and transportation systems.
The board of directors approved an 8.8% increase in the quarterly dividend rate to 80.5 cents per share.
Guidance
Atmos Energy provided fiscal 2024 earnings guidance in the range of $6.45-$6.65 per share. The Zacks Consensus Estimate is pegged at $6.57 per share, higher than $6.55, the midpoint of the guided range.
ATO expects to invest $2.9 billion in fiscal 2024.
Zacks Rank
Atmos Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas (OGS - Free Report) to report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, suggesting a year-over-year decline of 2.44%.
The Zacks Consensus Estimate for OGS’ 2023 earnings is pegged at $4.14 per share, implying a year-over-year decline of 1.47%.
Sempra Energy (SRE - Free Report) to report fourth-quarter 2023 results on Feb 27 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.13 per share, calling for a year-over-year decline of 4.24%.
The Zacks Consensus Estimate for SRE’s 2023 earnings is pegged at $4.59 per share, implying a year-over-year decline of 0.43%.
Northwest Natural (NWN - Free Report) will report fourth-quarter 2023 results on Feb 23 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating a year-over-year decline of 4.41%.
The Zacks Consensus Estimate for NWN’s 2023 earnings is pegged at $2.68 per share, implying a year-over-year increase of 5.51%.