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Atmos Energy to Release Q3 Earnings: Here's What You Need to Know

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Key Takeaways

  • ATO's Q3 earnings likely benefited from system upgrades, new rates, and a growing customer base.
  • Higher distribution revenues and lower interest expenses might have supported ATO's bottom line.
  • Increased O&M costs and higher depreciation could have pressured ATO's quarterly earnings.

Atmos Energy Corporation (ATO - Free Report) is scheduled to release third-quarter fiscal 2025 results on Aug. 6, after market close. The company delivered an earnings surprise of 3.8% in the last reported quarter. 

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

Major Factors That Might Have Impacted ATO’s Q3 Earnings

Atmos Energy is expected to have continued to benefit from its strategic investments, which are focused on modernizing the transmission and distribution systems. This is likely to have enhanced service reliability and boosted its bottom line in the to-be-reported quarter.

The company’s quarterly earnings might have benefited from an expanding customer base. Implementation of new rates in Atmos Energy’s service regions during the fiscal third and previous quarters is expected to have had a positive impact on its bottom-line performance. 

The quarterly results are also expected to benefit from higher distribution revenues and lower interest expenses. 

However, an increase in operation and maintenance expenses and higher depreciation & amortization might have negatively impacted its bottom line.

Q3 Expectations for ATO Stock

The Zacks Consensus Estimate for earnings is pegged at $1.17 per share, indicating a year-over-year increase of 8.3%. 

The Zacks Consensus Estimate for revenues is pinned at $940.91 million, implying a year-over-year improvement of 34.1%.

What the Zacks Model Unveils

Our proven model does not 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, which 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 0.00%. 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. 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 industry, as these have the right combination of elements to post an earnings beat this reporting cycle.

New Jersey Resources (NJR - Free Report) is likely to come up with an earnings beat when it reports fiscal third-quarter results on Aug. 4. It has an Earnings ESP of +11.77% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for fiscal third-quarter earnings is pinned at a loss of 6 cents per share. The Zacks Consensus Estimate for sales is pinned at $308.41 million, which implies a year-over-year increase of 11.9%. 

ONE Gas (OGS - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug. 5. It has an Earnings ESP of +3.22% and a Zacks Rank #2 at present.

OGS’ long-term (three to five years) earnings growth rate is 5.56%. The Zacks Consensus Estimate for earnings is pinned at 53 cents per share, which implies a year-over-year increase of 10.4%. 

MDU Resources Group (MDU - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug. 7. It has an Earnings ESP of +20% and a Zacks Rank #2 at present.

MDU’s long-term earnings growth rate is 6.94%. The Zacks Consensus Estimate for second-quarter earnings is pinned at 13 cents per share, which implies a year-over-year decrease of 59.4%. 

 

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