Atmos Energy Corporation ATO is scheduled to release first-quarter fiscal 2026 results on Feb. 3, after market close. In the last reported quarter, the company delivered an earnings surprise of 5.94%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors That May Have Influenced ATO’s Q1 Earnings
Atmos Energy is poised to benefit from its focused investments in upgrading transmission and distribution systems. These initiatives are likely to have improved system reliability, enhanced customer service quality and contributed to the company’s bottom-line performance for the quarter.
The company’s earnings are likely to have been bolstered by rising demand from steady customer growth across its service territories. Additionally, the implementation of new rates and constructive regulatory mechanisms across ATO’s service territories may have enhanced its bottom-line performance. Higher distribution revenues also seem to have supported the company’s quarterly performance.
However, higher operation and maintenance expenses may have weighed on the company’s bottom-line performance.
Q1 Expectations for ATO
The Zacks Consensus Estimate for earnings is pegged at $2.41 per share, indicating a year-over-year increase of 8.1%.
The Zacks Consensus Estimate for revenues is pinned at $1.44 billion, implying a year-over-year improvement of 22%.
What Our Quantitative Model Predicts for ATO
Our proven model predicts an earnings beat for Atmos Energy this time. 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, which is the case here, as you will see below.
Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is +0.49%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may consider the following players from the same sector, as these also have the right combination of elements to post an earnings beat this reporting cycle.
Spire Inc. SR is slated to report its first-quarter fiscal 2026 results on Feb. 3, before market open. It has an Earnings ESP of +3.93% and a Zacks Rank of 2 at present.
SR’s long-term (three to five years) earnings growth rate is 10.54%. The Zacks Consensus Estimate for earnings stands at $1.58 per share, which implies a year-over-year increase of 17.9%.
American Electric Power AEP is scheduled to report its fourth-quarter 2025 results on Feb. 12, before market open. It has an Earnings ESP of +2.08% and a Zacks Rank of 3 at present.
AEP’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for sales stands at $5.23 billion, which implies a year-over-year rise of 11.4%.
Exelon Corporation EXC is slated to report its fourth-quarter 2025 results on Feb. 12, before market open. It has an Earnings ESP of +4.74% and a Zacks Rank of 3 at present.
EXC’s long-term earnings growth rate is 6.03%. The Zacks Consensus Estimate for sales stands at $5.54 billion, which implies a year-over-year improvement of 1.3%.
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Exelon Corporation (EXC): Free Stock Analysis Report American Electric Power Company, Inc. (AEP): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Spire Inc. (SR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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