Atmos Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Atmos Energy ATO posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.ATO’s RevenuesThe company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.Atmos Energy Corporation Price, Consensus and EPS Surprise Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation QuoteHighlights of ATO’s Q2 ReleaseOperation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.ATO’s Segmental DetailsDistribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.ATO’s Financial HighlightsAs of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.ATO’s FY26 GuidanceAtmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.Total net income is expected to be in the range of $1.41-$1.43 billion.ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.ATO’s Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Utilities ReleasesAlgonquin Power & Utilities Corp. AQN is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.PPL Corporation PPL is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.Global Water Resources, Inc. GWRS is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks