Atmos Energy (ATO) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Atmos Energy (ATO) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for May 7, 2025, with expectations of quarterly earnings at $2.89 per share, reflecting a +1.4% change year-over-year, and revenues projected at $1.88 billion, up 14.4% from the previous year [3][2]. - The consensus EPS estimate has been revised 0.14% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading indicates a likely earnings beat, particularly when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8][10]. - Atmos has a positive Earnings ESP of +1.33% and a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Atmos exceeded the expected earnings of $2.20 per share by delivering $2.23, resulting in a surprise of +1.36% [12]. - Over the past four quarters, Atmos has consistently beaten consensus EPS estimates [13]. Industry Comparison - New Jersey Resources (NJR), another player in the Zacks Utility - Gas Distribution industry, is expected to report earnings of $1.65 per share, indicating a year-over-year change of +17.9%, with revenues projected at $731.72 million, up 11.2% [17]. - NJR's consensus EPS estimate has been revised 750% lower in the last 30 days, but a higher Most Accurate Estimate has resulted in an Earnings ESP of 1.21%, suggesting a likely earnings beat [18].