Atmos Energy (ATO) to Post Q4 Earnings: What's in the Cards?

Zacks Equity Research
·3 min read

Atmos Energy Corporation ATO is set to report fourth-quarter fiscal 2020 results on Nov 11, after the market closes. This natural gas distribution company delivered an earnings surprise of 3.95% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

The pace of re-opening of economies slowed down in some of the states in which the company operates to curb the coronavirus spread, which is likely to have impacted non-residential customers in the fiscal fourth quarter. The non-residential customer group accounts for 43% of revenues. However, extended stay-at-home directives are expected to have increased demand from the residential group, which accounts for 57% of revenues. This is likely to have offset the demand decline from the non-residential group.
 
New rates amounting to $145.5 million implemented in Atmos Energy’s service territories are likely to have positively impacted fiscal fourth-quarter earnings.

Expectation

The Zacks Consensus Estimate for earnings per share for fourth-quarter fiscal 2020 is currently pegged at 52 cents, which indicates growth of 6.1% from the year-ago reported figure.

Atmos Energy Corporation Price and EPS Surprise

Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation Price and EPS Surprise

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

What Our Quantitative Model Predicts

Our proven model predicts 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 the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +1.92%.

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 #3.

Another Stock to Consider

Investors can also consider another player from the same sector that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Spire Inc. SR is scheduled to release fiscal fourth-quarter 2020 results on Nov 18. It has an Earnings ESP of +6.75% and a Zacks Rank #3.

Other Releases

National Fuel Gas Company NFG posted fourth-quarter fiscal 2020 operating earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 34 cents by 17.7%.

ONE Gas Inc. OGS reported third-quarter 2020 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 8.3%.

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National Fuel Gas Company (NFG) : Free Stock Analysis Report
 
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
 
Spire Inc. (SR) : Free Stock Analysis Report
 
ONE Gas, Inc. (OGS) : Free Stock Analysis Report
 
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