Atmos Energy Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Atmos Energy ATO posted second-quarter fiscal 2025 earnings of $3.03 per share, which surpassed the Zacks Consensus Estimate of $2.92 by 3.8%. The bottom line also improved 6.3% from the year-ago quarter’s $2.85. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

ATO’s Revenues

Total revenues of $1.95 billion beat the Zacks Consensus Estimate of $1.9 billion by 2.7%. The top line also increased 18.1% from the year-ago quarter’s reported number of $1.65 billion.

ATO’s Segmental Revenues

Distribution: Net income totaled $381 million, highlighting an 11.1% increase from $343 million in the year-ago quarter.

Pipeline and Storage: Net income amounted to $105 million, reflecting an 18% increase from $89 million reported in the year-ago quarter.

Highlights of ATO’s Q2 Release

Operation and maintenance expenses amounted to $233.3 million, up 16.4% from the year-ago quarter’s level.

Operating income totaled $628.9 million, up 14.1% from the year-ago quarter’s figure.

Atmos Energy incurred interest expenses of $50 million, down 9.1% from the year-earlier quarter’s level.

The company reported 189.5 million cubic feet of consolidated distribution throughput for the quarter, up 7.5% from the year-ago quarter’s reported actuals.

ATO’s Financial Highlights

As of March 31, 2024, Atmos Energy reported a strong balance sheet with approximately $5.3 billion in available liquidity.

As of March 31, 2025, ATO had cash and cash equivalents of $543.5 million compared with $307.3 million as of Sept. 30, 2024.

Net cash flow provided by operating activities in the first six months of fiscal 2025 was $1.2 billion compared with $0.99 billion in the year-ago period.

In the first six months of fiscal 2025, the company invested nearly $1.73 billion, with 85% of the amount allocated for improving the safety and reliability of its distribution and transportation systems.

ATO’s Guidance

Atmos Energy raised its fiscal 2025 earnings guidance to $7.20-$7.30 per share from $7.05-$7.25. The Zacks Consensus Estimate is pegged at $7.19 per share, lower than the company’s revised guided range.

Total net income is expected to be in the range of $1.15-$1.17 billion.

ATO also anticipates its fiscal 2025 capital expenditure to be $3.7 billion.

ATO’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Spire Inc. SR reported second-quarter fiscal 2025 earnings of $3.60 per share, which lagged the Zacks Consensus Estimate of $3.70 by 2.7%.

SR’s long-term (three to five years) earnings growth rate is 6.54%. It delivered an average earnings surprise of 2.5% in the past four quarters.

ONE Gas, Inc. OGS reported first-quarter 2025 operating earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.85 by 7%.

OGS’ long-term earnings growth rate is 5.56%. The Zacks Consensus Estimate for 2025 sales is pinned at $2.34 billion.

UGI Corporation UGI reported second-quarter fiscal 2025 adjusted operating earnings of $2.21 per share, which surpassed the Zacks Consensus Estimate of $1.80 by 22.8%.

UGI’s long-term earnings growth rate is 5.2%. The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $7.79 billion.

 

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

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