Atmos Energy (ATO) Q1 Earnings Surpass Estimates

Core Viewpoint - Atmos Energy (ATO) reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.41 per share, and showing an increase from $2.23 per share a year ago, representing an earnings surprise of +1.46% [1][2] Financial Performance - The company posted revenues of $1.34 billion for the quarter ended December 2025, which was 6.45% below the Zacks Consensus Estimate, compared to $1.18 billion in revenues from the same quarter last year [2] - Over the last four quarters, Atmos has surpassed consensus EPS estimates three times but has only topped consensus revenue estimates once [2] Stock Performance - Atmos shares have decreased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current Zacks Rank for Atmos is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $3.28, with expected revenues of $2.22 billion, and for the current fiscal year, the estimate is $8.08 on revenues of $5.61 billion [7] - The trend of estimate revisions for Atmos was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Utility - Gas Distribution industry, to which Atmos belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Sempra (SRE), is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decline of -24.7% [9]