Atmos Energy Corporation (ATO - Free Report) posted third-quarter fiscal 2019 earnings of 68 cents per share, which lagged the Zacks Consensus Estimate of 69 cents by 1.4%. However, the reported earnings improved 6.3% from the prior-year figure. The year-over-year improvement in earnings is driven by the implementation of new rates and customer growth.
Total revenues of $485.7 million lagged the Zacks Consensus Estimate of $701 million by 30.7%. Moreover, the figure was 13.6% lower than the year-ago total revenues of $562.2 million. The year-over-year decline in revenues was due to lower contribution from its distribution segment.
Distribution: Revenues from the segment decreased 16.9% to $444.9 million from $535.5 million in the prior-year quarter. Distribution contribution margin increased to $305.4 million from $304.6 million in the year-ago quarter, driven by customer growth in its Mid-Tex division and new rates.
Pipeline and Storage: Revenues from the segment increased 16.8% to $149.2 million from $127.7 million in the year-ago quarter. The improvement was driven by increase in rates, and positive supply and demand dynamics in the Permian Basin.