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Why Is Atmos (ATO) Down 7.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Atmos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Atmos Energy posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.
ATO’s Revenues
The company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.
Highlights of ATO’s Q2 Release
Operation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.
Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.
Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.
ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.
The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.
ATO’s Segmental Details
Distribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.
Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.
ATO’s Financial Highlights
As of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.
As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.
Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.
During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.
In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.
ATO’s FY26 Guidance
Atmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Atmos has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Atmos (ATO) Down 7.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Atmos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Atmos Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Atmos Energy posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.
ATO’s Revenues
The company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.
Highlights of ATO’s Q2 Release
Operation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.
Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.
Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.
ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.
The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.
ATO’s Segmental Details
Distribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.
Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.
ATO’s Financial Highlights
As of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.
As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.
Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.
During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.
In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.
ATO’s FY26 Guidance
Atmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Atmos has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Atmos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.