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Atmos Energy (ATO) to Post Q2 Earnings: What's in the Offing?

·3 min read

Atmos Energy Corporation ATO is set to report second-quarter fiscal 2022 results on May 4, after the market closes. This natural gas distribution company reported an average surprise of 4.4% in the last four quarters.

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

Factors at Play

Atmos Energy’s earnings in fiscal second-quarter 2022 benefited from new rates worth $28.9 million completed through Feb 28, 2022. Efficient management of expenses and a declining weighted average cost of debt are expected to have boosted margins in the fiscal second quarter.

Atmos Energy’s fiscal second-quarter earnings are likely to have benefited from greater demand from the expanding customer base in the distribution segment.

Expectation

The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings per share is currently pegged at $2.39, which indicates an increase of 3.9% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict 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. That is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Atmos Energy Corporation Price and EPS Surprise

Atmos Energy Corporation Price and EPS Surprise
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 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Atmos Energy currently carries a Zacks Rank #3.

Stocks to Consider

Investors can consider a few other players from the same sector that have the right combination of elements to post an earnings beat for the to-be-reported quarter.

ONE Gas OGS is likely to come up with an earnings beat when it reports first-quarter results on May 2, after market close. ONE Gas has an Earnings ESP of +1.22% and a Zacks Rank #3 at present.

OGS’ long-term (three to five years) earnings growth is pegged at 5%. The Zacks Consensus Estimate for OGS’ 2022 earnings per share indicates 5.7% year-over-year growth.

WEC Energy Group WEC is likely to come up with an earnings beat when it reports first-quarter results on May 2, before the market opens. WEC Energy Group has an Earnings ESP of +1.68% and a Zacks Rank #3 at present.

WEC Energy’s long-term earnings growth is pegged at 6%. The Zacks Consensus Estimate for WEC’s 2022 earnings per share suggests a rise of 4.6% year over year.

Edison International EIX is likely to come up with an earnings beat when it reports first-quarter results on May 3. Edison International has an Earnings ESP of +13.71% and a Zacks Rank #3 at present.

Edison International’s long-term earnings growth is pegged at 3.95%. EIX reported an average surprise of 1.4% in the last four reported quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Edison International (EIX) : Free Stock Analysis Report

WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report

Atmos Energy Corporation (ATO) : Free Stock Analysis Report

ONE Gas, Inc. (OGS) : Free Stock Analysis Report

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