News

Atmos Energy ATO posted second-quarter fiscal 2024 earnings of $2.85 per share, which surpassed the Zacks Consensus Estimate of $2.62 by 8.8%. The bottom line also improved by 14.9% from the year-ago quarter’s $2.48 per share.

Revenues

Total revenues of $1.65 billion lagged the Zacks Consensus Estimate of $1.78 billion by 7.5%. However, the top line increased 7.1% from the year-ago quarter’s reported number of $1.54 billion.

Segmental Revenues

Distribution: In the second quarter of fiscal 2024, revenues totaled $1.59 billion, highlighting a 6% increase from $1.5 billion in the year-ago quarter.

Pipeline and Storage: Revenues amounted to $223 million, reflecting a 21.2% increase from $184 million in the year-ago quarter.

Highlights of the Release

Operation and maintenance expenses amounted to $199.9 million, up 2.7% from the year-ago quarter’s level.

Operating income totaled $551 million in the reported quarter, up 30.4% from the year-ago quarter’s level.

Atmos Energy incurred interest expenses of $55.4 million, up 48.1% from the year-ago quarter.

The company reported 176.2 million cubic feet of consolidated distribution throughput for the quarter, up 9.4% from the year-ago quarter’s actual.

Financial Highlights

As of Mar 31, 2024, Atmos Energy reported a strong balance sheet with available liquidity of approximately $4.2 billion.

As of Mar 31, 2024, ATO had cash and cash equivalents of $262.5 million compared with $15.4 million as of Sep 30, 2023.

Net cash flow provided by operating activities in the first six months of fiscal 2024 was $0.99 billion compared with $2.89 billion in the year-ago quarter.

In the first six months of fiscal 2024, the company invested nearly $1.42 billion, with 81% of the amount being invested to improve the safety and reliability of its distribution and transportation systems.

Guidance

Atmos Energy increased its fiscal 2024 earnings guidance in the range of $6.70-$6.80 per share, up from the previous guidance of $6.45-$6.65 per share. The Zacks Consensus Estimate is pegged at $6.60 per share, lower than the company’s guided range.

ATO also raised its fiscal 2024 capital expenditure guidance to $3.1 billion from the previous expectation of $2.9 billion.

Zacks Rank

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

Recent Releases

UGI Corporation UGI reported fiscal second-quarter 2024 operating earnings of $1.97 per share, which surpassed the Zacks Consensus Estimate of $1.65 by 19.4%.

The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $2.91, which calls for a year-over-year increase of 2.5%. It delivered an average earnings surprise of 19.1% in the last four quarters.

MDU Resources Group Inc. MDU reported first-quarter 2024 operating EPS of 52 cents, which increased 20.9% from the year-ago quarter’s 43 cents.

MDU’s long-term (three to five years) earnings growth rate is 6%. The consensus estimate for 2024 EPS is pegged at $1.55, which implies a year-over-year increase of 3.3%.

National Fuel Gas Company NFG reported fiscal second-quarter 2024 adjusted operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 26.9%.

The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $4.56, which indicates a year-over-year decrease of 11.8%. It delivered an average earnings surprise of 10.9% in the last four quarters.

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