Atmos Energy Prepares for Earnings Report: Analysts Predict Profit Growth
Atmos Energy Corporation (ATO), a leading natural gas distributor, boasts a market cap of $21.3 billion. Based in Dallas, Texas, the company provides natural gas marketing and procurement services to large clients while managing storage and pipeline assets. Investors are keenly awaiting ATO’s fiscal first-quarter earnings announcement for 2024, scheduled after the market closes on Tuesday, February 4.
Analysts Predict a Positive Earnings Report
In anticipation of the upcoming report, analysts forecast ATO will report a profit of $2.23 per share on a diluted basis. This marks a notable increase of 7.2% compared to $2.08 per share in the same quarter last year. Historically, ATO has performed well against consensus estimates, beating them in three of the last four quarters, with one shortfall.
Future Earnings Projections
Looking ahead to 2025, analysts estimate that ATO will achieve an earnings per share (EPS) of $7.18, reflecting a 5.1% increase from $6.83 in fiscal 2024. Furthermore, the EPS is projected to rise to $7.72 in fiscal 2026, a growth rate of 7.5% year over year.
Stock Performance Compared to Market Trends
Over the past 52 weeks, ATO stock has underperformed compared to the S&P 500, which gained 21.8%. ATO shares climbed only 16.1% during this span and lagged behind the Utilities Select Sector SPDR Fund’s (XLU) increase of 17.3% during the same period.
Recent Earnings and Investor Sentiment
On November 6, ATO shares rose 1.8% following the release of fourth-quarter earnings, which showcased a $33.4 million rise in operating income attributed to increased distribution rates. Investor enthusiasm was further strengthened by an 8.1% increase in the quarterly dividend to $0.87 per share and a positive full-year EPS projection of $7.05 to $7.25.
Analysts Remain Optimistic
The consensus among analysts regarding ATO stock remains cautiously optimistic, rating it as a “Moderate Buy.” Out of 12 analysts monitoring the stock, six advocate for a “Strong Buy,” one recommends a “Moderate Buy,” and five suggest holding. The average price target is set at $151.25, indicating a possible upside of 10.4% from current trading levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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