Atmos Energy (ATO) Beats Q2 Earnings and Revenue Estimates

Core Insights - Atmos Energy (ATO) reported quarterly earnings of $3.03 per share, exceeding the Zacks Consensus Estimate of $2.92 per share, and up from $2.85 per share a year ago, representing an earnings surprise of 3.77% [1] - The company posted revenues of $1.95 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.72%, compared to $1.65 billion in the same quarter last year [2] - Atmos shares have increased approximately 16.3% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $954.77 million, and for the current fiscal year, it is $7.19 on revenues of $4.78 billion [7] - The estimate revisions trend for Atmos is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry, to which Atmos belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Another company in the same industry, Sempra (SRE), is expected to report quarterly earnings of $1.21 per share, reflecting a year-over-year decline of 9.7%, with revenues anticipated at $3.85 billion, up 5.7% from the previous year [9][10]