The 10-second takeaway
For the quarter ended March 31 (Q2), Atmos Energy beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped slightly. GAAP earnings per share increased.
Gross margins shrank, operating margins dropped, net margins were steady.
Atmos Energy reported revenue of $1.31 billion. The four analysts polled by S&P Capital IQ foresaw revenue of $1.25 billion on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $1.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.25. The seven earnings estimates compiled by S&P Capital IQ predicted $1.22 per share. Non-GAAP EPS of $1.25 for Q2 were 2.3% lower than the prior-year quarter's $1.28 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.) GAAP EPS of $1.27 for Q2 were 5.8% higher than the prior-year quarter's $1.20 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, 120 basis points worse than the prior-year quarter. Operating margin was 16.1%, 40 basis points worse than the prior-year quarter. Net margin was 8.9%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $689.7 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $5.76 billion. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 111 members out of 127 rating the stock outperform, and 16 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Atmos Energy a green thumbs-up, and three 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 $39.13.
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