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Atmos Energy to Report Q4 Earnings: What's in Store for the Stock?

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Key Takeaways

  • ATO's Q4 earnings are expected to rise 7.55%, with revenues up 29.15% Y/Y.
  • Customer growth, Texas gas demand and pipeline investments may support ATO's Q4.
  • Higher operating and compliance costs pose risks, while Earnings ESP stands at -0.09%.

Atmos Energy Corporation (ATO - Free Report)  ) is scheduled to release fourth-quarter fiscal 2026 results on Nov. 4, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 6.72%.

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

Fiscal Q4 Expectations for ATO

The Zacks Consensus Estimate for earnings is pegged at $1.14 per share, indicating a year-over-year increase of 7.55%. 

The Zacks Consensus Estimate for revenues is pegged at $952.47 million, implying a year-over-year improvement of 29.15%.

The Zacks Consensus Estimate for total consolidated distribution throughput volumes in the fiscal fourth quarter is pegged at 66,450 Million Cubic Feet (MMcf), indicating a 7.1% year-over-year decrease.

Key Factors Influencing ATO’s Q4 Earnings

Atmos Energy's fiscal fourth-quarter results are expected to benefit from continued customer growth and rising natural gas demand. Rising residential and commercial natural gas demand in Texas is likely to have contributed to higher distribution revenues in the fiscal fourth quarter. Strong economic activity across the company's service territories is driving customer additions and higher consumption is expected to support fourth-quarter performance.

The company's investments in expanding and upgrading its natural gas pipeline infrastructure are expected to support fourth-quarter results. These projects enhance pipeline capacity, improve system reliability and support rate base growth. Its previously implemented rate increases across both operating segments are expected to have supported revenues and operating income in the to-be-reported quarter.

Elevated operating and maintenance expenses, rising compliance costs and fluctuations in commodity prices remain potential headwinds for fourth-quarter results.

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 -0.09%. 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.

Atmos Energy Corporation Price and EPS Surprise

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.

Southwest Gas (SWX - Free Report) is scheduled to report third-quarter results on Nov. 4 and is likely to come up with an earnings beat. It has an Earnings ESP of +8.0% and a Zacks Rank #2 at present.

SWX’s long-term (three to five years) earnings growth rate is 11.15%. The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pinned at 17 cents, which implies a year-over-year increase of 183.33%.

Evergy (EVRG - Free Report) is scheduled to report third-quarter results 2026 on Nov. 5, and is likely to come up with an earnings beat. It has an Earnings ESP of +2.90 and a Zacks Rank #2 at present.

EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter EPS is pinned at $2.30, which implies a year-over-year increase of 13.30%.

PPL Corporation (PPL - Free Report) is set to report third-quarter 2026 results on Nov. 6 and is likely to have an earnings beat. It has an Earnings ESP of +0.38% and a Zacks Rank #2 at present.

PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter EPS is pinned at 53 cents, which implies a year-over-year increase of 10.42%.

 

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