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Atmos Energy to Post Q4 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • Customer growth and system upgrades are likely to have boosted ATO's quarterly performance.
  • New rates implemented in its service territories are expected to act as tailwinds.
  • Increased operation and maintenance expenses may have pressured earnings.

Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5, after market close. In the last reported quarter, the company posted a negative earnings surprise of 0.85%.

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

Factors That Might Have Impacted ATO’s Q4 Earnings

Atmos Energy is expected to gain from its strategic investments aimed at modernizing transmission and distribution systems. These efforts are likely to have enhanced service reliability, improved customer service and supported its bottom-line performance in the quarter to be reported.

The company’s earnings are likely to have benefited from robust customer growth across its service territories. Additionally, the implementation of new rates in ATO’s service areas in recent quarters is expected to have further strengthened its bottom-line performance. ATO’s quarterly performance is also likely to have been supported by higher distribution revenues.

However, an increase in operation and maintenance expenses may have put pressure on the company’s bottom line.

Q4 Expectations for ATO

The Zacks Consensus Estimate for earnings is pegged at 96 cents per share, indicating a year-over-year increase of 11.6%. 

The Zacks Consensus Estimate for revenues is pinned at $889 million, implying a year-over-year improvement of 35.1%.

What Our Quantitative Model Predicts for ATO

Our proven model predicts an earnings beat for Atmos Energy this time. 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 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 +4.85%. 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.

Other Stocks to Consider

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

Alliant Energy (LNT - Free Report) is slated to report its third-quarter 2025 results on Nov. 6, after market close. It has an Earnings ESP of +0.43% and a Zacks Rank of 3 at present.

LNT’s long-term (three to five years) earnings growth rate is 6.57%. The Zacks Consensus Estimate for earnings stands at $1.17 per share, which implies a year-over-year increase of 1.7%.

Duke Energy (DUK - Free Report) is scheduled to report its third-quarter 2025 results on Nov. 7, before market open. It has an Earnings ESP of +1.63% and a Zacks Rank of 2 at present.

DUK’s long-term earnings growth rate is 6.43%. The Zacks Consensus Estimate for earnings stands at $1.74 per share, which implies a year-over-year increase of 7.4%.

New Jersey Resources Corporation (NJR - Free Report) is slated to report its fourth-quarter fiscal 2025 results on Nov. 19, after market close. It has an Earnings ESP of +8.51% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales stands at $303.1 million. The Zacks Consensus Estimate for earnings is pegged at 16 cents per share.

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