A month has gone by since the last earnings report for Atmos Energy (ATO). Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Atmos due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Atmos Energy Corporation before we dive into how investors and analysts have reacted as of late.
Atmos Energy Beats Q4 Earnings Estimates, Provides Long-Term Guidance
Atmos Energy posted fourth-quarter fiscal 2025 earnings of $1.07 per share, which beat the Zacks Consensus Estimate of $1.01 by 5.9%. The bottom line improved 24.4% from the year-ago quarter’s 86 cents.
For fiscal 2025, Atmos Energy’s earnings per share were $7.46 on net income of $1.2 billion.
Highlights of ATO’s Release
Operating income in the fiscal fourth quarter was $219.5 million compared with $185 million in the year-ago quarter.
In fiscal 2025, new rates worth $333.6 million were implemented and in year-to-date fiscal 2026, rates worth $146.3 million were implemented.
ATO reported net income of $175 million in the fiscal fourth quarter compared with $134 million in the year-ago quarter.
ATO’s Segmental Details
Distribution: Net income totaled $55 million, highlighting a 34.1% increase from $41 million in the year-ago quarter.
Pipeline and Storage: Income amounted to $120 million, reflecting a 29% increase from $93 million reported in the year-ago quarter.
ATO’s Financial Highlights
As of Sept. 30, 2025, Atmos Energy reported a strong balance sheet with approximately $4.9 billion in available liquidity.
During fiscal 2025, issued two tranches of long-term debt having a combined value of $1.15 billion.
In fiscal 2025, the company invested nearly $3.56 billion, with 87% of the amount allocated for improving the safety and reliability of its distribution and transportation systems.
ATO’s Guidance
Atmos Energy initiates fiscal 2026 guidance in the range of $8.15-$8.45 per share. The Zacks Consensus Estimate is pegged at $7.91 per share, lower than the company’s guided range.
ATO also anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase over fiscal 2025.
ATO plans to invest $26 billion from fiscal 2026 to 2030 to further strengthen its existing operations.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Atmos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Atmos has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Atmos Energy Corporation (ATO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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