It has been about a month since the last earnings report for Atmos Energy (ATO) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Atmos due for a pullback? 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 Top Estimates, Sales Rise Y/ ...

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tornado98 Shares of Atmos Energy (NYSE:ATO) have been a moderate performer over the past year, rising by 8%, though shares have risen more steadily in recent weeks as interest rates have declined. I last covered Atmos in April, rating shares a buy, and since then, the stock is up 10% while the market is flat. With updated financials and recent outperformance, now is a good time to revisit Atmos. Seeking Alpha In the company’s fiscal third quarter, it earned $1.08, beating consensus by $0.03. Despite t ...

Financial Data and Key Metrics - Fiscal year-to-date diluted earnings per share increased to $6 from $5.33 in the prior year period [6] - Operating income increased by $238 million due to regulatory outcomes and $18 million from residential customer growth and industrial load in the distribution segment [6] - Pipeline and storage segment operating income increased by $19 million period-over-period, with $11 million realized in the third fiscal quarter [6] - Consolidated O&M increased by $16 million (3%), primarily due to higher employee-related costs, insurance premiums, and IT software maintenance costs, partially offset by a $15 million decrease in the pipeline and storage segment [7][8] - Consolidated capital spending increased to $2.1 billion, with over 8% dedicated to improving system safety and reliability [8] - Equity capitalization stood at 61% with approximately $4.3 billion in liquidity at the end of the third fiscal quarter [10] Business Line Data and Key Metrics - Distribution segment spending increased due to higher safety and reliability spending and customer growth [9] - Pipeline and storage segment spending was lower than the prior year due to timing [9] - $213 billion in annualized regulatory outcomes implemented since the end of the second fiscal quarter, including Texas GRIP filings and filings with Dallas, Louisiana, and Tennessee [9] - $380 million in annualized regulatory outcomes completed year-to-date, with an additional $182 million in progress [9] - First filing under APT's new system safety and integrity mechanism seeking a $19 million revenue increase [10] Market Data and Key Metrics - 57,000 new customers added in the 12 months ending June 30, with nearly 45,000 located in Texas [13] - Texas added 267,000 jobs over the last 12 months, representing a 1.9% annual growth rate [13] - 10 new industrial customers added in the third quarter with an anticipated annual load of 2 Bcf, and 32 new industrial customers added year-to-date with an anticipated annual load of 6 Bcf [14] Company Strategy and Industry Competition - Continued focus on compliance, maintenance, and system monitoring, with O&M spending expected to trend higher in the fourth fiscal quarter [8] - Fiscal 2024 O&M spending expected to be in the range of $800 million to $820 million [8] - Fiscal 2024 capital spending on track to reach approximately $3.1 billion [9] - Fiscal 2024 EPS guidance reaffirmed at the higher end of the $6.70 to $6.80 range [11] - Anticipated 6% to 8% earnings per share growth through fiscal 2028 [12] Management Commentary on Operating Environment and Future Outlook - Strong economic growth in service territories, particularly in Texas, driving customer and industrial demand [13] - Elevated APT spreads expected to continue through the end of the fiscal year, contributing modestly to Q4 results [11] - Fiscal 2024 financing plan complete, with $551 million in net proceeds from forward sale agreements satisfying most of fiscal 2025 equity needs [10][17] Other Important Information - $325 million senior unsecured debt offering completed in June, with a weighted average cost of debt at 4.1% and a weighted average maturity of approximately 17 years [11] - $19 million in funding assistance provided to over 47,000 customers through energy assistance agencies [14] Q&A Session Summary Question: Equity needs for 2025 - The company typically issues $600 million to $800 million in equity annually through the ATM program, with $551 million already priced to satisfy most of fiscal 2025 needs [16][17] Question: O&M execution for 2025 - O&M drivers for 2025 will include hydrostatic testing, line locating, integrity regulations, and markable placement on hard-to-locate lines, with a continued focus on 6% to 8% EPS growth [18][19][20] Question: Fiscal 2024 results and 2025 outlook - Fiscal 2024 results include $0.17 in one-time items, with APT spread benefits expected to continue into 2025 but at lower levels [21][22] - Elevated APT spreads in Q4 are already factored into the updated guidance [23][24] Question: APT spread dynamics and Matterhorn in-service date - No further maintenance expected on APT upstream segments, with Matterhorn expected to come online in September or October [26][27] - APT sharing mechanism benchmark set at $106.9 million, with no immediate implications for resetting the bar [29][30][31] Question: Opportunities from new gas generation or infrastructure - Potential opportunities exist to support gas movement for new generation, but the company would be one of several suppliers to power generators [32][33]

Atmos Energy (ATO) posted third-quarter fiscal 2024 earnings of $1.08 per share, which surpassed the Zacks Consensus Estimate of $1.05 by 2.9%. The bottom line also improved 14.9% from the year-ago quarter’s 94 cents.RevenuesTotal revenues of $701.5 million lagged the Zacks Consensus Estimate of $925 million by 24%. However, the top line increased 5.9% from the year-ago quarter’s reported number of $662.7 million. Segmental RevenuesDistribution: Revenues totaled $633.2 million, highlighting a 2.8% increase ...

For the quarter ended June 2024, Atmos Energy (ATO) reported revenue of $701.55 million, up 5.9% over the same period last year. EPS came in at $1.08, compared to $0.94 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $924.75 million, representing a surprise of -24.14%. The company delivered an EPS surprise of +2.86%, with the consensus EPS estimate being $1.05.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Atmos Energy (ATO) came out with quarterly earnings of $1.08 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.86%. A quarter ago, it was expected that this natural gas utility would post earnings of $2.62 per share when it actually produced earnings of $2.85, delivering a surprise of 8.78%.Over the last four quarters, the co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-10042 | --- | --- | |----------------------------------------------------------------------------------------|--------------------- ...