Atmos Energy Corporation ATO is set to report second-quarter fiscal 2020 results on May 6, after the market closes. This natural gas distribution company delivered a negative earnings surprise of 1.3% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
New rates amounting to $59.2 million implemented in Atmos Energy’s service territories are likely to have positively impacted fiscal second-quarter earnings. Residential customers of the company account for nearly 60% of revenues. Hence, stay-at-home orders — part of social distancing guidelines — to prevent the coronavirus spread should have benefited the company in the to-be-reported quarter.
During the reported quarter, it decided to temporarily suspend natural gas disconnections for customers who are in financial distress due to the novel coronavirus outbreak. This may have had a minor impact on fiscal second-quarter earnings.
The Zacks Consensus Estimate for earnings per share for second-quarter fiscal 2020 is currently pegged at $1.94, which indicates growth of 6.6% 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 #1.
Stocks to Consider
Investor can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Algonquin Power & Utilities Corp. AQN is scheduled to release first-quarter 2020 results on May 7. It has an Earnings ESP of +1.59% and a Zacks Rank #2.
Spire Inc. SR is set to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +0.17% and a Zacks Rank #3.
New Jersey Resources NJR is slated to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +3.86% and a Zacks Rank #3.
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