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Atmos Energy (ATO) Q4 Earnings Match Estimates, Revenues Lag

Atmos Energy Corporation ATO posted fourth-quarter fiscal 2021 earnings of 37 cents per share, on par with the Zacks Consensus Estimate.

The reported earnings declined 30.2% from the prior-year figure. Despite a rate increase in both the segments, increased depreciation and property tax expenses, timing of system maintenance, and higher employee costs offset the positives.

Fiscal 2021 earnings per share were up 8.5% year over year to $5.12.

Revenues

Total revenues of $568 million lagged the Zacks Consensus Estimate of $623 million by 8.7%. Nonetheless, the top line increased 19.6% from the year-ago reported figure due to strong contribution from its Distribution segment.

Atmos Energy Corporation Price, Consensus and EPS Surprise

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

Segment Revenues

Distribution: Revenues from the segment increased 21.8% to $523.9 million from $430.2 million in the prior-year quarter. The improvement was driven by an increase in rates and customer growth.

Pipeline and Storage: Revenues from the segment increased 2.3% to $160.5 million from $156.9 million in the year-ago quarter.

Quarterly Highlights

Purchased gas cost for the quarter was $83.8 million, up 362.9% from the year-ago period. Operation and maintenance expenses for the quarter were $199.5 million, up 10.8% from the year-ago period.

Operating income for the reported quarter was down 9.9% year over year to $90.9 million.

Atmos Energy incurred interest expenses of $14.5 million, down 6.5% from the year-ago period.

Financial Highlights

As of Sep 30, 2021, Atmos Energy had cash and cash equivalents of $116.7 million compared with $20.8 million on Sep 30, 2020.

Long-term debt was $4.93 billion as of Sep 30, 2021, up from $4.53 billion on Sep 30, 2020.

Atmos Energy’s cash flow used in/from operating activities for fiscal 2021 was ($1,084.3) million against $1,037.9 million provided in the comparable year-ago period.

ATO invested $1,969.5 million in fiscal 2021 to strengthen operations. Nearly 88% of the capital spending was associated with system safety and increased reliability of services.

Guidance

Atmos Energy initiated its fiscal 2022 earnings guidance in the range of $5.40-$5.60 per share. The Zacks Consensus Estimate for fiscal 2022 earnings of $5.43 per share is lower than the midpoint of the guided range. It expects capital expenditure in the range of $2.4-$2.5 billion for fiscal 2022.

Atmos Energy expects capital expenditure in the range of $13-$14 billion for the fiscal 2022-2026 time period. Atmos Energy expects fiscal 2026 earnings in the range of $7-$7.40 per share. The figure is likely to expand annually by 6-8% in the fiscal 2022-2026 time frame.

Zacks Rank

Atmos Energy currently has 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 posted fourth-quarter fiscal 2021 adjusted operating earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 78 cents by 21.8%. Total revenues of $356 million, however, missed the Zacks Consensus Estimate of $430 million by 17.3%.

National Fuel Gas revised its fiscal 2022 earnings guidance to the range of $5.05-$5.45 from the prior expectation of $4.40-$4.80. The new guidance takes into consideration the expected increase in natural gas prices in fiscal 2022. National Fuel Gas returned 45.1% in the past 12 months compared with the industry’s rally of 18.1%.

Chesapeake Utilities Corp. CPK posted third-quarter 2021 adjusted operating earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 54 cents by 31.5%. Total revenues of $107 million, however, missed the Zacks Consensus Estimate of $114 million by 5.8%.

Chesapeake Utilities’ capital expenditure guidance for the 2021-2025 time period is projected in the range of $750 million to $1 billion. The company has boosted its earnings per guidance to $6.05-$6.25 for 2025. Chesapeake Utilities has returned 25% in the past 12 months.

ONE Gas Inc. OGS reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate. Revenues of $273.9 million for the quarter surpassed the Zacks Consensus Estimate of $261 million by 4.9%.

ONE Gas raised its 2021 net income guided range to $204-$209 million from $198-$210 million and earnings per share expectation to $3.80-$3.90 from the $3.68-$3.92 band. The Zacks Consensus Estimate for ONE Gas’ 2021 earnings has moved up 0.8% in the past 60 days to $3.84 per share.

 


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Chesapeake Utilities Corporation (CPK): Free Stock Analysis Report
 
Atmos Energy Corporation (ATO): Free Stock Analysis Report
 
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ONE Gas, Inc. (OGS): Free Stock Analysis Report
 
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