Atmos Energy (US:ATO) Yahoo Finance·2026-01-07 06:51Core Viewpoint - Atmos Energy Corporation is positioned for stable growth with positive earnings expectations and strong operational performance, despite some macroeconomic concerns affecting investor sentiment [2][8]. Financial Performance - Atmos Energy is expected to report diluted EPS of $2.39 for fiscal 2026 Q1, reflecting a 7.2% increase from $2.23 in the same quarter last year [2]. - Analysts project a diluted EPS of $8.08 for fiscal 2026, indicating an 8.3% year-over-year growth, followed by a further increase to $8.61 in fiscal 2027, representing a 6.6% growth [3]. - For fiscal 2025, Atmos Energy reported a diluted EPS of $7.46, up from $6.83 in fiscal 2024, marking the 23rd consecutive year of earnings growth [7]. Stock Performance - Over the past 52 weeks, Atmos Energy's stock gained 22.7%, although it is slightly down on a year-to-date basis [4]. - In comparison, the S&P 500 Index increased by 16.2% over the same period, with a year-to-date gain of 1.5% [4]. - The State Street Utilities Select Sector SPDR ETF (XLU) rose by 12.6% over the last year, indicating that Atmos Energy's performance is driven by company-specific factors rather than broader sector trends [5]. Recent Developments - Following the release of its fourth-quarter fiscal 2025 earnings, Atmos Energy's shares rose by 1.7% as EPS reached $1.07, surpassing analyst estimates of $0.95 and showing a year-over-year increase of 24.4% [6]. - Net income for the same quarter increased by 30.6% year-over-year to $175 million [6]. Market Sentiment - Despite strong operational results, macroeconomic factors are influencing market sentiment, with Morgan Stanley downgrading Atmos Energy's stock to "Equal Weight" from "Overweight" and reducing its target price from $182 to $172, citing concerns over political and regulatory risks [8].