Atmos Energy (ATO) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
Atmos Energy Corporation ATO posted fiscal fourth-quarter 2023 earnings of 80 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 8.1%. The bottom line improved 56.9% from the year-ago quarter’s 51 cents.
The year-over-year increase in earnings was due to rate-case outcomes in both Distribution and Pipeline and Storage segments, and customer growth in the Distribution segment. This was partially offset by higher depreciation and property tax expenses owing to increased capital investments.
Revenues
Total revenues of $587.6 million lagged the Zacks Consensus Estimate of $923 million by 36.3%. The top line also decreased 18.7% from the year-ago quarter’s reported number of $723 million.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote
Segmental Revenues
Distribution: Revenues in third-quarter fiscal 2023 totaled $542.9 million, indicating a 20% decline from $678.9 million in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $205.9 million, implying a 12.1% increase from $183.4 million a year ago.
Highlights of the Release
Operation and maintenance expenses amounted to $190.1 million, down 7.5% from the year-ago quarter’s level.
Operating income totaled $154.1 million in the reported quarter, up 46.2% from the year-ago quarter’s level.
Atmos Energy incurred interest expenses of $31.8 million, up 14.4% year over year.
The company reported 65.9 million cubic feet (“MMcf”) of consolidated distribution throughput for the quarter, down 3.4% from the year-ago quarter’s actual.
Consolidated pipeline and storage transportation volumes came in at 195.5 MMcf, up 15.9% year over year.
ATO Energy increased its quarterly dividend by 8.8% to 80.5 cents, taking the new annualized rate to $3.22 per share.
Financial Highlights
As of Sep 30, 2023, Atmos Energy reported a strong balance sheet with available liquidity of approximately $2.7 billion.
As of Sep 30, 2023, ATO had cash and cash equivalents of $15.4 million compared with $51.6 million as of Sep 30, 2022.
As of Sep 30, 2023, long-term debt was $6,554.1 million compared with $5,760.6 million as of Sep 30, 2022.
Net cash flow provided by operating activities in fiscal 2023 was $3,459.7 million compared with $977.6 million in the year-ago period.
Capital expenditures amounted to $2.8 billion for fiscal 2023, with nearly 85% of the amount being related to system safety and reliability investments.
Guidance
Atmos Energy provided fiscal 2024 earnings guidance in the range of $6.45-$6.65 per share. The Zacks Consensus Estimate for the same is pegged at $6.46 per share, lower than $6.56, the midpoint of the guided range.
ATO expects to invest $17 billion in the fiscal 2024-2028 period.
Zacks Rank
Atmos Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
National Fuel Gas Company NFG reported fiscal fourth-quarter 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%.
NFG’s long-term (three- to five-year) earnings growth rate is 8.05%. The Zacks Consensus Estimate of NFG’s fiscal 2024 earnings per share (“EPS”) of $5.61 reflects year-over-year growth of 8.51%.
Sempra Energy SRE reported third-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate of $1.01 by 6.9%.
SRE’s long-term earnings growth rate is 4.95%. The Zacks Consensus Estimate of SRE’s 2023 EPS of $4.52 reflects an increase of 1.11% in the last 60 days.
Southwest Gas Holdings Inc. SWX recorded third-quarter 2023 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 2 cents by 400%.
SWX’s long-term earnings growth rate is 5%. The Zacks Consensus Estimate of SWX’s 2023 EPS of $3.49 reflects year-over-year growth of 16.3%.
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