Atmos Energy to Release Q2 Earnings: Here's What to Expect

Atmos Energy Corporation ATO is scheduled to release second-quarter fiscal 2025 results on May 7, after market close. The company delivered an earnings surprise of 1.4% in the last reported quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

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

Key Factors That Might Have Impacted ATO Stocks' Q2 Earnings

Atmos Energy is expected to have continued to benefit from strategic investments and its focus on modernizing the transmission and distribution systems. This is likely 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 second and previous quarters is expected to have had a positive impact on its bottom-line performance.

The quarterly performance is also expected to have benefited from higher distribution revenues and lower interest expenses.

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

Q2 Expectations for ATO Stock

The Zacks Consensus Estimate for earnings is pegged at $2.89 per share, indicating a year-over-year increase of 1.4%.

The Zacks Consensus Estimate for revenues is pinned at $1.88 billion, implying a year-over-year improvement of 14.4%.

What the Zacks Model Unveils

Our proven model predicts 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, 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 +1.33%. 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.

Other Stocks to Consider

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

New Jersey Resources NJR is likely to come up with an earnings beat when it reports fiscal first-quarter results on May 5. It has an Earnings ESP of +1.21% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for first-quarter earnings is pinned at $1.65 per share. The Zacks Consensus Estimate for sales is pinned at $731.72 million, which implies a year-over-year increase of 11.2%.

ONE Gas OGS is likely to come up with an earnings beat when it reports first-quarter results on May 5. It has an Earnings ESP of +0.11% and a Zacks Rank #3 at present.

OGS’ long-term (three to five years) earnings growth rate is 5.56%. The Zacks Consensus Estimate for earnings is pinned at $1.85 per share, which implies a year-over-year increase of 5.7%.

MDU Resources Group MDU is likely to come up with an earnings beat when it reports first-quarter results on May 8. It has an Earnings ESP of +8.33% and a Zacks Rank #1 at present.

MDU’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for first-quarter earnings is pinned at 36 cents per share.

 

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This article originally published on Zacks Investment Research (zacks.com).

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