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Atmos (ATO) Down 1.7% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
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 most recent earnings report in order to get a better handle on the important drivers.
Atmos Energy Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Atmos Energy reported fiscal third-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 by 6.7%. The bottom line improved 23.3% from $1.16 in the year-ago quarter.
ATO’s Revenues
The company reported revenues of $879 million, which missed the Zacks Consensus Estimate of $1.04 billion by 15.3%. The top line increased 4.8% from $838.8 million in the prior-year quarter.
ATO’s Quarterly Operating Highlights
Operation and maintenance expenses in the third quarter of fiscal 2026 amounted to $223.2 million, up 0.5% year over year.
Operating income in the third quarter of fiscal 2026 was $320.4 million, up 27.1% from $252.1 million in the prior-year quarter.
As of Aug. 5, 2026, Atmos Energy had implemented $396.1 million of annualized rate outcomes, while $334.1 million remained in progress.
ATO reported net income of $242.7 million in the third quarter of fiscal 2026, up 37.8% from $186.4 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $33.1 million, down 20.2% from the year-earlier quarter’s level.
The company reported consolidated distribution throughput of 73.1 million cubic feet per day for the third quarter, down 2.93% from the year-ago quarter’s reported actual.
ATO’s Segmental Performance
Distribution: Net income totaled $89.4 million, up 26.8% from $70.5 million in the year-ago quarter. The increase was driven by a $21 million benefit from rate adjustments, primarily in the Mid-Tex Division, along with $26.7 million of deferred infrastructure-related costs and a $3.9 million contribution from residential customer growth and higher industrial demand.
Pipeline and Storage: Net income increased 32.2% year over year to $153.3 million. The improvement was driven partly by a $35.1 million benefit from rate adjustments, primarily related to Gas Reliability Infrastructure Program filings approved in June 2025 and May 2026.
Atmos Energy’s Balance Sheet and Infrastructure Spending
As of June 30, 2026, cash and cash equivalents were $521 million, up from $202.7 million at fiscal 2025-end.
As of June 30, 2026, Atmos Energy reported a strong balance sheet with approximately $4.6 billion of available liquidity.
Net cash provided by operating activities totaled $1.67 billion during the first nine months of fiscal 2026 compared with $1.70 billion a year earlier.
Capital expenditure totaled $1.04 billion in the third quarter, up 19.9% year over year. For the first nine months of fiscal 2026, spending reached $3.08 billion, with $2.72 billion directed toward safety and reliability projects.
Atmos Energy Reaffirms Fiscal 2026 Guidance
ATO reaffirmed fiscal 2026 guidance of $8.40-$8.50 per share. The Zacks Consensus Estimate for EPS is pegged at $8.44, slightly lower than the midpoint of the company’s guided range.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates review over the past two months.
VGM Scores
At this time, Atmos has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated 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 F. 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.
Performance of an Industry Player
Atmos belongs to the Zacks Utility - Gas Distribution industry. Another stock from the same industry, ONE Gas (OGS - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
ONE Gas reported revenues of $411.64 million in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.82 for the same period compares with $0.53 a year ago.
ONE Gas is expected to post earnings of $0.50 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ONE Gas. Also, the stock has a VGM Score of C.
View the Zacks #1 Rank List
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Atmos (ATO) Down 1.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Atmos Energy (ATO - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
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 most recent earnings report in order to get a better handle on the important drivers.
Atmos Energy Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Atmos Energy reported fiscal third-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 by 6.7%. The bottom line improved 23.3% from $1.16 in the year-ago quarter.
ATO’s Revenues
The company reported revenues of $879 million, which missed the Zacks Consensus Estimate of $1.04 billion by 15.3%. The top line increased 4.8% from $838.8 million in the prior-year quarter.
ATO’s Quarterly Operating Highlights
Operation and maintenance expenses in the third quarter of fiscal 2026 amounted to $223.2 million, up 0.5% year over year.
Operating income in the third quarter of fiscal 2026 was $320.4 million, up 27.1% from $252.1 million in the prior-year quarter.
As of Aug. 5, 2026, Atmos Energy had implemented $396.1 million of annualized rate outcomes, while $334.1 million remained in progress.
ATO reported net income of $242.7 million in the third quarter of fiscal 2026, up 37.8% from $186.4 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $33.1 million, down 20.2% from the year-earlier quarter’s level.
The company reported consolidated distribution throughput of 73.1 million cubic feet per day for the third quarter, down 2.93% from the year-ago quarter’s reported actual.
ATO’s Segmental Performance
Distribution: Net income totaled $89.4 million, up 26.8% from $70.5 million in the year-ago quarter. The increase was driven by a $21 million benefit from rate adjustments, primarily in the Mid-Tex Division, along with $26.7 million of deferred infrastructure-related costs and a $3.9 million contribution from residential customer growth and higher industrial demand.
Pipeline and Storage: Net income increased 32.2% year over year to $153.3 million. The improvement was driven partly by a $35.1 million benefit from rate adjustments, primarily related to Gas Reliability Infrastructure Program filings approved in June 2025 and May 2026.
Atmos Energy’s Balance Sheet and Infrastructure Spending
As of June 30, 2026, cash and cash equivalents were $521 million, up from $202.7 million at fiscal 2025-end.
As of June 30, 2026, Atmos Energy reported a strong balance sheet with approximately $4.6 billion of available liquidity.
Net cash provided by operating activities totaled $1.67 billion during the first nine months of fiscal 2026 compared with $1.70 billion a year earlier.
Capital expenditure totaled $1.04 billion in the third quarter, up 19.9% year over year. For the first nine months of fiscal 2026, spending reached $3.08 billion, with $2.72 billion directed toward safety and reliability projects.
Atmos Energy Reaffirms Fiscal 2026 Guidance
ATO reaffirmed fiscal 2026 guidance of $8.40-$8.50 per share. The Zacks Consensus Estimate for EPS is pegged at $8.44, slightly lower than the midpoint of the company’s guided range.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates review over the past two months.
VGM Scores
At this time, Atmos has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated 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 F. 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.
Performance of an Industry Player
Atmos belongs to the Zacks Utility - Gas Distribution industry. Another stock from the same industry, ONE Gas (OGS - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
ONE Gas reported revenues of $411.64 million in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.82 for the same period compares with $0.53 a year ago.
ONE Gas is expected to post earnings of $0.50 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ONE Gas. Also, the stock has a VGM Score of C.