Atmos Energy Corporation Prepares for Q2 Earnings Report

Atmos Energy Corporation (ATO), valued at $23.5 billion by market capitalization, is a prominent natural gas distributor. The company serves over 3 million customers across eight U.S. states and operates extensive natural gas pipelines and storage systems to facilitate energy delivery.

Upcoming Earnings Expectations

ATO is scheduled to release its second-quarter results after market closure on Wednesday, May 7. Analysts predict that the utility will report an adjusted EPS of $2.89, reflecting a 1.4% increase from the $2.85 reported in the same quarter last year. Notably, Atmos has exceeded consensus earnings expectations in each of the previous four quarters.

Fiscal Projections

For the full fiscal year 2025, ATO is expected to report an adjusted EPS of $7.19, which would signify a 5.3% rise from the $6.83 reported in fiscal 2024. Looking ahead to fiscal 2026, the company’s earnings are anticipated to grow by 7.9% year-over-year to reach $7.76 per share.

Stock Performance Overview

Over the past 52 weeks, ATO’s stock prices have surged 33.8%, significantly outperforming the Utility Select Sector SPDR Fund (XLU), which reported 16.9% gains, and the S&P 500 Index ($SPX), which delivered 9.4% returns during the same period.

Following the release of its Q1 results on February 4, ATO’s stock rose by 1.9%. Although distribution revenues showed modest changes, pipeline and storage revenues saw significant increases. Overall, Atmos reported a 1.5% year-over-year increase in total revenue, totaling $1.2 billion. Improved margins due to a drop in gas costs contributed to over a 13% year-over-year growth in net income, leading to $351.9 million, with an EPS of $2.23 surpassing consensus estimates by 1.4% and boosting investor confidence.

Analyst Ratings and Market Outlook

The consensus outlook for ATO remains moderately optimistic. It carries a “Moderate Buy” rating, based on evaluations from 13 analysts. Current ratings include six “Strong Buys,” one “Moderate Buy,” and six “Holds.” As of now, ATO is trading slightly below its average price target of $159.90.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please review the Barchart Disclosure Policy here.

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