Can Atmos Energy Beat These Numbers?

Atmos Energy (NYS: ATO) is expected to report Q3 earnings on Aug. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Atmos Energy's revenues will increase 2.6% and EPS will increase 15.6%.

The average estimate for revenue is $601.3 million. On the bottom line, the average EPS estimate is $0.37.


Revenue details
Last quarter, Atmos Energy reported revenue of $1.31 billion. 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 are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.25. GAAP EPS of $1.27 for Q2 were 5.8% higher than the prior-year quarter's $1.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $3.47 billion. The average EPS estimate is $2.47.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 109 members out of 125 rating the stock outperform, and 16 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Atmos Energy a green thumbs-up, and four 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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The article Can Atmos Energy Beat These Numbers? originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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