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.
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-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.
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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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