Atmos Energy (ATO) ZACKS·2025-03-06 17:36Core Viewpoint - Atmos Energy reported a strong first-quarter fiscal 2025 earnings performance, with earnings per share surpassing estimates, although total revenues fell short of expectations. The company is maintaining a positive outlook for the fiscal year ahead. Financial Performance - Atmos Energy posted first-quarter fiscal 2025 earnings of $2.23 per share, exceeding the Zacks Consensus Estimate of $2.20 by 1.4% and improving 7.2% from the previous year's $2.08 [2] - Total revenues reached $1.18 billion, which was 16.2% below the Zacks Consensus Estimate of $1.40 billion, but represented a 1.7% increase from the year-ago quarter's $1.16 billion [3] Segmental Revenue Breakdown - Distribution segment revenues totaled $1.109 billion, reflecting a 0.4% increase from $1.105 billion in the prior year [4] - Pipeline and Storage segment revenues amounted to $255.4 million, marking a significant 20.9% increase from $211.2 million reported in the year-ago quarter [4] Operational Highlights - Operation and maintenance expenses were $207 million, up 24.5% from the previous year [5] - Operating income increased to $459.5 million, a 15.1% rise from the year-ago figure [5] - Interest expenses were reported at $52.9 million, up 2% from the previous year [5] - Consolidated distribution throughput was 109.6 million cubic feet, down 11.1% from the year-ago quarter [5] Financial Position - As of December 31, 2024, Atmos Energy had available liquidity of approximately $5.2 billion [6] - Cash and cash equivalents stood at $584.5 million, compared to $307.3 million as of September 30, 2024 [6] - Net cash flow from operating activities for the first three months of fiscal 2025 was $282 million, up from $245.3 million in the prior year [6] Capital Expenditure and Guidance - The company invested nearly $891.2 million in the first three months of fiscal 2025, with 86% allocated for enhancing the safety and reliability of its distribution and transportation systems [7] - Atmos Energy reaffirmed its fiscal 2025 earnings guidance in the range of $7.05-$7.25 per share, with the Zacks Consensus Estimate at $7.18 per share [8] - Total net income is projected to be between $1.12 billion and $1.15 billion [8] - Fiscal 2025 capital expenditure is anticipated to be $3.7 billion [9] Market Outlook - Atmos Energy holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [11]