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Atmos Energy Gears Up to Report Q3 Earnings: Here's What to Expect
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Key Takeaways
Atmos Energy's fiscal Q3 EPS is expected to rise 15.52%, with revenues up 23.73% year over year.
Customer additions, Texas demand and rate implementations are expected to support distribution revenues.
Infrastructure spending may aid safety, reliability and earnings, while higher costs remain a risk.
Atmos Energy Corporation (ATO - Free Report) ) is scheduled to release third-quarter fiscal 2026 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 2.97%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Fiscal Q3 Expectations for ATO
The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a year-over-year increase of 15.52%.
The Zacks Consensus Estimate for revenues is pinned at $1.04 billion, implying a year-over-year improvement of 23.73%.
The Zacks Consensus Estimate for Total consolidated distribution throughput volumes in the fiscal third quarter is pegged at 78,000 MMcf, indicating a 3.5% year-over-year increase.
Key Factors Influencing ATO’s Q3 Earnings
Atmos Energy's fiscal third-quarter earnings are expected to have benefited from continued customer additions, fueled by strong economic and population growth across its service territories. Expanding residential and commercial demand, particularly in Texas, is expected to have supported natural gas distribution revenues in the fiscal third quarter.
Higher natural gas demand is expected to have supported the company's fiscal third-quarter performance. Ongoing rate implementations and constructive regulatory mechanisms are also expected to have provided a tailwind to earnings.
The company's systematic capital investments in transmission and distribution infrastructure are expected to have benefited fiscal third-quarter results. These investments likely enhanced the safety and reliability of its network while supporting earnings.
However, higher operating, maintenance and compliance costs, along with commodity price volatility, remain key risks for the to-be-reported quarter.
What Our Quantitative Model Predicts for ATO
Our proven model does not predict 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 not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
Duke Energy Corporation (DUK - Free Report) is scheduled to report second-quarter results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.
Southwest Gas (SWX - Free Report) is scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.
Spire (SR - Free Report) is set to report third-quarter fiscal 2026 results on Aug 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.
SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%.
View the Zacks #1 Rank List
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Atmos Energy Gears Up to Report Q3 Earnings: Here's What to Expect
Key Takeaways
Atmos Energy Corporation (ATO - Free Report) ) is scheduled to release third-quarter fiscal 2026 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 2.97%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Fiscal Q3 Expectations for ATO
The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a year-over-year increase of 15.52%.
The Zacks Consensus Estimate for revenues is pinned at $1.04 billion, implying a year-over-year improvement of 23.73%.
The Zacks Consensus Estimate for Total consolidated distribution throughput volumes in the fiscal third quarter is pegged at 78,000 MMcf, indicating a 3.5% year-over-year increase.
Key Factors Influencing ATO’s Q3 Earnings
Atmos Energy's fiscal third-quarter earnings are expected to have benefited from continued customer additions, fueled by strong economic and population growth across its service territories. Expanding residential and commercial demand, particularly in Texas, is expected to have supported natural gas distribution revenues in the fiscal third quarter.
Higher natural gas demand is expected to have supported the company's fiscal third-quarter performance. Ongoing rate implementations and constructive regulatory mechanisms are also expected to have provided a tailwind to earnings.
The company's systematic capital investments in transmission and distribution infrastructure are expected to have benefited fiscal third-quarter results. These investments likely enhanced the safety and reliability of its network while supporting earnings.
However, higher operating, maintenance and compliance costs, along with commodity price volatility, remain key risks for the to-be-reported quarter.
What Our Quantitative Model Predicts for ATO
Our proven model does not predict 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 not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.75%. 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.
Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote
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.
Duke Energy Corporation (DUK - Free Report) is scheduled to report second-quarter results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.
Southwest Gas (SWX - Free Report) is scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.
Spire (SR - Free Report) is set to report third-quarter fiscal 2026 results on Aug 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.
SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%.