U.S. markets open in 9 hours 18 minutes

  • S&P Futures

    4,055.75
    -1.75 (-0.04%)
     

  • Dow Futures

    32,885.00
    -18.00 (-0.05%)
     

  • Nasdaq Futures

    12,943.00
    -22.00 (-0.17%)
     

  • Russell 2000 Futures

    1,781.70
    -2.60 (-0.15%)
     

  • Crude Oil

    72.72
    -0.25 (-0.34%)
     

  • Gold

    1,959.60
    -7.30 (-0.37%)
     

  • Silver

    23.49
    +0.02 (+0.10%)
     

  • EUR/USD

    1.0838
    -0.0009 (-0.09%)
     

  • 10-Yr Bond

    3.5660
    +0.0020 (+0.06%)
     

  • Vix

    19.12
    -0.85 (-4.26%)
     

  • GBP/USD

    1.2306
    -0.0007 (-0.06%)
     

  • USD/JPY

    132.6840
    -0.0610 (-0.05%)
     

  • Bitcoin USD

    28,517.76
    +1,137.03 (+4.15%)
     

  • CMC Crypto 200

    619.00
    +18.03 (+3.00%)
     

  • FTSE 100

    7,564.27
    +80.02 (+1.07%)
     

  • Nikkei 225

    27,654.22
    -229.56 (-0.82%)
     

Atmos Energy (ATO) Q3 Earnings Beat Estimates, Revenues Miss

Zacks Equity Research
·3 min read

Atmos Energy Corporation ATO posted third-quarter fiscal 2021 earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 5.4%.

The reported earnings declined 18.8% from the prior-year figure. Despite a rate increase in both the segments, increased depreciation and property tax expenses, timing of system maintenance, refund of excess deferred income taxes to customers and higher bad debt expense in its distribution segment offset the positives.

Total Revenues

Total revenues of $605.5 million lagged the Zacks Consensus Estimate of $631 million by 4.1%. Nonetheless, the top line increased 22.8% from the year-ago reported figure due to strong contribution from its Distribution segment.

Atmos Energy Corporation Price, Consensus and EPS Surprise

Atmos Energy Corporation Price, Consensus and EPS Surprise
Atmos Energy Corporation Price, Consensus and EPS Surprise

Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote

Segment Revenues

Distribution: Revenues from the segment increased 28.4% to $558.8 million from $435.3 million in the prior-year quarter. The improvement was driven by an increase in rates and customer growth.

Pipeline and Storage: Revenues from the segment increased 3.1% to $162.9 million from $158 million in the year-ago quarter.

Quarterly Highlights

Purchased gas cost for the quarter was $86.9 million, up 232.9% from the year-ago period. Operation and maintenance expenses for the quarter were $184.5 million, up 23.4% from the year-ago period.

Operating income for the reported quarter was down 4.1% year over year to $133.4 million.

The company incurred interest expenses of $20.9 million, up 6.6% from the year-ago period.

Financial Highlights

As of Jun 30, 2021, Atmos Energy had cash and cash equivalents of $524.6 million compared with $20.8 million on Sep 30, 2020.

Long-term debt was $7.12 billion as of Jun 30, 2021, up from $4.53 billion on Sep 30, 2020.

The company’s cash flow (used in)/from operating activities for the first nine months of fiscal 2021 was ($1,158.5) million against $895.5 million recorded in the comparable year-ago period.

It invested $1,357.9 million in the first nine months of fiscal 2021 to strengthen operations. Nearly 87% of the capital spending was associated with system safety and increased reliability of services.

Guidance

Atmos Energy reiterated its fiscal 2021 earnings guidance in the range of $4.90-$5.10 per share. The Zacks Consensus Estimate for fiscal 2021 earnings is $5.08 per share. It expects capital expenditure in the range of $2-$2.2 billion for fiscal 2021.

Zacks Rank

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

Other Releases

ONEOK Inc. OKE posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.

ONE Gas Inc. OGS reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.

UGI Corporation UGI reported third-quarter fiscal 2021 earnings of 13 cents per share, beating the Zacks Consensus Estimate of 11 cents by 18.2%.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ONEOK, Inc. (OKE) : Free Stock Analysis Report

Atmos Energy Corporation (ATO) : Free Stock Analysis Report

UGI Corporation (UGI) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research

Recommended Stories

  • Will Bitcoin keep minting more millionaires or is this just a 'dead cat bounce'? Here's why Warren Buffett believes crypto 'will come to a very bad ending'

    The Oracle of Omaha never saw a future in cryptocurrency.

  • Cathie Wood Doubles Down on These 2 Stocks Under $5

    There’s no getting away from it, given the Fed’s policy of aggressive rate hikes, a soft landing for the U.S. economy appears out of the question. That at least is the opinion of Cathie Wood, who is therefore readying for a hard landing. “Money velocity is flattening,” the ARK Investment Management CEO said recently in reference to the recent banking mess while Wood also expects a marked deceleration in nominal gross domestic product. However, these are all blind spots for the Fed, she believes,

  • Market Rally Picks Up Steam, Here's What To Do; 10 Stocks Flashing Buy Signals

    The stock market rally gained momentum Wednesday, clearing key levels. Microsoft and Micron were among 10 stocks flashing buy signals.

  • In Case You Haven't Heard: Your Required Minimum Distributions (RMDs) Have Officially Been Pushed Back

    The SECURE 2.0 Act, signed by President Biden in December 2022, includes dozens of changes to provisions related to tax-advantaged retirement accounts. Among the most important changes is a provision, which took effect Jan. 1 of this year, that delays … Continue reading → The post Your Required Minimum Distributions (RMDs) Have Officially Been Pushed Back appeared first on SmartAsset Blog.

  • Ask an Advisor: We Are 70 Years Old, Have $99K in Retirement Income, a $1.4M IRA and Other Investments. Is It Too Late to Convert to a Roth?

    My wife and I are 70 years old. We've paid off everything, including the house. Between my pension of $29,000 and Social Security, we're getting a gross of $99,000 a year in income, which is more than enough. Our current … Continue reading → The post Ask an Advisor: We Are 70 Years Old, Have $99K in Retirement Income, a $1.4M IRA and Other Investments. Is It Too Late to Convert to a Roth? appeared first on SmartAsset Blog.

  • 'So absurd': Bernie Sanders says the top 15 hedge fund managers earn more than all the kindergarten teachers in the US — here are 3 of the richest hedgies and what they're invested in

    What we know about the world’s richest.

  • Biden’s sweeping plan to help renters comes 'at the expense' of mom-and-pop landlords — here's what to do if you still want your slice of the real estate pie

    Rule changes living rent-free in your mind? Perhaps it's time for a more passive approach.

  • ‘Charts Point to Higher Highs,’ Says Oppenheimer. Here Are 2 Stocks With Over 100% Upside Potential

    There are different ways to assess whether it’s time to lean heavily into a certain class of stocks, and according to Oppenheimer’s head of Technical Analysis Ari H. Wald, the charts right now are pointing toward a resurgence in growth. “Recent points of market discussion have included incremental cracks in value and concurrent relative strength in growth,” Wald noted. “Breaking down the components and their influence on the market, we see growth in a stronger position to the lead the S&P 500 hi

  • Disney's Florida surprise: an end run around DeSantis

    Florida lawmakers passed a bill in February giving Governor Ron DeSantis effective control over a board that oversees municipal services and development in a special district that encompasses Walt Disney World resort. But before the takeover by DeSantis's appointees, Walt Disney Co pushed through changes to the special tax district agreement that limit the board's action for decades, according to the Orlando Sentinel, which quoted lawyers for the board who spoke at a meeting on Wednesday. "It completely circumvents the authority of this board to govern," board member Brian Aungst Jr. was quoted as saying.

  • Intel says power-efficient Sierra Forest chip will be delivered in H1 2024

    U.S. chip giant Intel Corp said on Wednesday its first semiconductor for data center customers focused on power efficiency, Sierra Forest, would be delivered in the first half of next year, as it outlined a chip release schedule after prior delays. "It's been a challenging few years as we had introduced a lot of innovation but also a lot of complexity and our product release dates had pushed out," Intel Data Center and AI Group head Sandra Rivera told Reuters ahead of an investor event. Intel still dominates the markets for PC and server processing chips, with a market share greater than 70%, tech research firm IDC has calculated.

  • Elon Musk Says Warren Buffett Missed Out On The Best Stock

    Elon Musk doesn't seem all that impressed with Warren Buffett's stock picks. And he took to Twitter — of course — to say so.

  • Dividend Stocks Are Key in a Volatile Market; Here's 10 From Morningstar

    Morningstar has put together a list of top dividend stocks held by its 'ultimate stock pickers.'

  • First Republic Bank is not currently looking for a buyer

    First Republic Bank is no longer actively looking for a buyer as potential suitors are concerned about the losses they'll have to add to their books with no government backup.

  • Buy Alibaba Stock Because $130 Is Around the Corner, Says Top Analyst

    It’s all change at Alibaba (NYSE:BABA). In what represents the biggest recalibration of the organization in its 24-year history, the Chinese ecommerce giant announced that it will split its business into six different groups (Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group and Digital Media and Entertainment Group). Each group will have its own CEO and board of directors. Each will also be able to raise outside f

  • Russia’s Economy Is Starting to Come Undone

    Investment is down, labor is scarce, budget is squeezed. Oligarch: ‘There will be no money next year’

  • Fisher Investments Moves to Texas Over Taxes

    The firm said it was relocating “immediately” from Washington after the state’s supreme court cleared the way for a capital gains tax on individuals.

  • Here's How Much to Keep in Stocks, Bonds and Cash in Retirement

    There are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation? When evaluating different approaches, consider how each strategy is put together and … Continue reading → The post Here's How Much to Keep in Stocks, Bonds and Cash in Retirement appeared first on SmartAsset Blog.

  • Nvidia Stock Is an AI Winner, but How Much Higher Can It Go?

    The big topic at Nvidia’s (NASDAQ:NVDA) recent GTC event concerned the opportunity around AI, with the company stressing it is well-positioned to be at the forefront of this secular trend. The event came hot on the heels of the release of OpenAI’s ChatGPT-4, the improved AI bot trained on both images and text. And fittingly, at the event, NVDA’s CEO Jensen Huang sat down with OpenAI co-founder Ilya Sutskever to talk about all things AI. Needham analyst Rajvindra Gill logged in to get the lowdown

  • Bet on Fed Rate Going to 1.5% Nets $10 Million After Wild Ride

    (Bloomberg) -- A bold options bet on sharp Federal Reserve interest-rate cuts appears to have been closed out for a $10 million profit, quadruple the initial stake, after it became nearly worthless for a time.Most Read from Bloomberg$52 Billion Chipmaking Plan Is Racing Toward FailureNew Yorkers Are Moving to These Three Florida Cities$335,000 Pay for ‘AI Whisperer’ Jobs Appears in Red-Hot MarketFBI Releases Files on Ivana TrumpScotiabank Economist Excoriates Trudeau, Freeland Over $32 Billion S

  • FDIC Faces $23 Billion in Costs From Bank Failures. It Wants Big Lenders to Pay

    (Bloomberg) -- The Federal Deposit Insurance Corp., facing almost $23 billion in costs from recent bank failures, is considering steering a larger-than-usual portion of that burden to the nation’s biggest banks, according to people with knowledge of the matter.Most Read from Bloomberg$52 Billion Chipmaking Plan Is Racing Toward FailureNew Yorkers Are Moving to These Three Florida Cities$335,000 Pay for ‘AI Whisperer’ Jobs Appears in Red-Hot MarketFBI Releases Files on Ivana TrumpScotiabank Econo