Atmos Energy Corporation ATO is scheduled to release first-quarter fiscal 2025 results on Feb. 4, after market close. The company delivered an earnings surprise of 2.4% in the last reported quarter.

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Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors That Might Have Impacted ATO Stocks' Q1 Earnings

Atmos Energy continues to benefit from strategic investments and its focus on modernizing the transmission and distribution systems. This is expected to have boosted its bottom line in the to-be-reported quarter.

The company’s earnings are likely to have benefited from an expanding customer base. Implementation of new rates in ATO’s service regions during the fiscal first quarter is likely to have had a positive impact on its bottom-line performance.

Lower interest expenses might have enhanced the quarterly performance.

However, an increase in operation and maintenance expenses and higher depreciation & amortization must have negatively impacted its bottom line.

Q1 Expectations for ATO Stock

The Zacks Consensus Estimate for earnings is pegged at $2.20 per share, indicating a year-over-year increase of 5.8%. The consensus estimate for revenues is pegged at $1.40 billion, implying a year-over-year improvement of 21.2%.

The consensus mark for consolidated distribution throughput is pegged at 127.51 million cubic feet (MMcf), up 3.5% year over year. The Zacks Consensus Estimate for consolidated pipeline and storage is pinned at 209.27 MMcf, up 36.3% year over year.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Atmos Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
 

Earnings ESP: The company’s Earnings ESP is -3.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Upcoming Releases

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.

UGI Corporation UGI is likely to come up with an earnings beat when it reports fiscal first-quarter results on Feb. 5. It has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for sales is pinned at $2.15 billion, which implies a year-over-year increase of 1.2%. UGI delivered an average earnings surprise of 73.3% in the trailing four quarters.

Spire Inc. SR is likely to come up with an earnings beat when it reports fiscal first-quarter results on Feb. 5. It has an Earnings ESP of +0.59% and a Zacks Rank #3 at present.

SR’s long-term (three to five years) earnings growth rate is 5.82%. The Zacks Consensus Estimate for sales is pinned at $725.88 million, which implies a year-over-year decrease of 4.1%.

ONE Gas OGS is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 19. It has an Earnings ESP of +0.38% and a Zacks Rank #3 at present.

OGS’ long-term earnings growth rate is 3.94%. The Zacks Consensus Estimate for earnings is pinned at $1.32 per share, which implies a year-over-year increase of 3.9%.

 

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Atmos Energy Corporation (ATO) : Free Stock Analysis Report

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Spire Inc. (SR) : Free Stock Analysis Report

ONE Gas, Inc. (OGS) : Free Stock Analysis Report

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