The chart below shows how ATO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATO sees a -0.77% change in stock price 10 days leading up to the earnings, and a +2.05% change 10 days following the report. On the earnings day itself, the stock moves by -0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong First-Quarter Profitability: First-quarter net income reached $352 million, translating to $2.23 per diluted share, showcasing strong profitability.
Capital Spending Overview: Capital spending for the first fiscal quarter was $891 million, supporting system modernization and growth across service territories.
Customer Growth Surge: Over the past twelve months, Atmos Energy added more than 59,000 new customers, with over 46,000 in Texas, indicating robust customer growth.
Operating Income Surge: Consolidated operating income increased by 15% to $459 million, driven by rate increases and higher industrial load, reflecting strong operational performance.
Debt Financing Achievement: The company completed over $1 billion in long-term debt equity financing, enhancing financial stability and supporting future growth initiatives.
Negative
O&M Expense Increase: $41 million increase in consolidated O and M expenses, driven by net expense increases and higher employee-related costs.
Net Expense Increase Analysis: $15 million net expense increase due to various factors, including a $14 million non-recurring reduction in the prior year quarter.
Compliance and Safety Spending Increase: $8 million increase in compliance and safety-related spending associated with increased leak service work and inspections.
Rising Operational Costs: $5 million increase in APT’s system safety and tariff expense, which, while offset by revenue, indicates rising operational costs.
Operating Income Strategy: $300 million in additional funds planned for seeking annualized operating income increases, indicating ongoing financial strain.
Atmos Energy Corporation (NYSE:ATO) Q1 2025 Earnings Call Transcript
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