The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Atmos Energy missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped.
Gross margins increased, operating margins shrank, and net margins dropped.
Atmos Energy logged revenue of $1.10 billion. The two analysts polled by S&P Capital IQ anticipated a top line of $1.19 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.61. The five earnings estimates compiled by S&P Capital IQ predicted $0.85 per share on the same basis. GAAP EPS of $0.75 for Q1 were 7.4% lower than the prior-year quarter's $0.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.4%, 30 basis points better than the prior-year quarter. Operating margin was 13.1%, 60 basis points worse than the prior-year quarter. Net margin was 6.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $1.46.
Next year's average estimate for revenue is $4.40 billion. The average EPS estimate is $2.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 108 members rating the stock outperform and 16 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Atmos Energy a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atmos Energy is hold, with an average price target of $33.36.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.