Examining the Future: Atmos Energy's Earnings Outlook

Atmos Energy ATO is set to give its latest quarterly earnings report on Wednesday, 2024-11-06. Here's what investors need to know before the announcement.

Analysts estimate that Atmos Energy will report an earnings per share (EPS) of $0.80.

The market awaits Atmos Energy's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.01, leading to a 0.9% drop in the share price the following trading session.

Here's a look at Atmos Energy's past performance and the resulting price change:

Market Performance of Atmos Energy's Stock

Shares of Atmos Energy were trading at $137.67 as of November 04. Over the last 52-week period, shares are up 25.12%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Atmos Energy

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Atmos Energy.

A total of 9 analyst ratings have been received for Atmos Energy, with the consensus rating being Outperform. The average one-year price target stands at $146.94, suggesting a potential 6.73% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of National Fuel Gas, Southwest Gas Hldgs and UGI, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for National Fuel Gas, with an average 1-year price target of $71.5, implying a potential 48.06% downside.
• The consensus outlook from analysts is an Neutral trajectory for Southwest Gas Hldgs, with an average 1-year price target of $74.0, indicating a potential 46.25% downside.
• The consensus among analysts is an Neutral trajectory for UGI, with an average 1-year price target of $27.0, indicating a potential 80.39% downside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for National Fuel Gas, Southwest Gas Hldgs and UGI, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Atmos Energy ranks at the top for Revenue Growth with 5.86%, outperforming peers. It also leads in Gross Profit at $492.83M. However, it ranks lower in Return on Equity at 1.39% compared to its peers.

Discovering Atmos Energy: A Closer Look

Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.

Atmos Energy: Financial Performance Dissected

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Atmos Energy's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.86%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: Atmos Energy's net margin is impressive, surpassing industry averages. With a net margin of 23.59%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Atmos Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.39%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.68%, the company showcases effective utilization of assets.

Debt Management: Atmos Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Atmos Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.