Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has Atmos Energy (ATO) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.Atmos Energy is a member of our Utilities group, which includes 104 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, ...

Fed Chair Jerome Powell always emphasized that interest rate cuts later this year will be fitting, but they are reliant on the path of the economy.Talking about the economy, the labor market continued to exhibit strength with 275,000 nonfarm jobs added in February, much higher than the forecasted 200,000, per the Bureau of Labor Statistics. Payrolls are, thus, almost double the number of monthly jobs needed to keep up with growth among the working-age population.However, it’s the rise in the unemployment le ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a met ...

Atmos Energy Corporation’s (ATO) strategic investment plans are expected to help increase the safety and reliability of its natural gas pipelines. The company gains from industrial customer additions and constructive rate outcomes. ATO’s steady performance has enabled it to reward shareholders through consistent hikes in its annual dividend rate.However, this currently Zacks Rank #3 (Hold) company faces strong competition from other clean alternative fuel suppliers.TailwindsAtmos Energy has a sturdy capital ...

When Interest Rates Are Cut, 6 Dividend Aristocrats Could Skyrocket ptasha / iStock via Getty Images The Federal Reserve started raising interest rates almost two years ago. While it is likely that we have seen the last of the rate hikes, it could be a long time before the current rates at 5.25%-5.5 % start to come down. Spiking inflation in January at the consumer and producer level put the kibosh on the anticipated March cuts, and while many now point to the summer for a rate cut, a raging stock market, ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric th ...

Natural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Distribution industry control miles of underground pipeline network to provide natural gas services to customers. The rising demand for clean, burning natural gas will create more opportunities for natural gas distribution companies.Sempra Energy (SRE) , with its widespread transmission and distribution lines and ...

Analyst Call to Review Fiscal 2024 First Quarter Financial Results February 7, 2024 9:00 a.m. Eastern Fiscal Q1 2024 Review ...

Financial Data and Key Metrics - Q1 2024 net income was $311 million, or $2.08 per diluted share, representing an 8.9% increase from $1.91 per share in the prior year quarter [7][14] - Consolidated operating income increased by 24% to $399 million in Q1 2024, driven by rate increases, customer growth, and lower O&M expenses [14] - Capital spending in Q1 2024 was $770 million, supporting system modernization and growth [7] - The company added over 58,000 new customers in the 12 months ended December 31, 2023, with 44,000 located in Texas [8] - 11 new industrial customers were added, expected to consume approximately 2.5 Bcf of gas annually, equivalent to 45,000 residential customers [9] Business Line Performance - In the APT segment, several projects were completed to enhance system safety, reliability, and supply diversification, including the Line PC and Line S2 projects [10][11] - The Line WA Loop project's first phase was completed, adding 24 miles of 36-inch pipeline to fortify the APT system serving the Dallas-Fort Worth Metroplex [12] - Customer satisfaction remained high at 98% in Q1 2024, and the company assisted nearly 17,000 customers with over $5 million in funding assistance [12] Market Performance - Texas added nearly 370,000 jobs in 2023, representing a 2.7% annual growth rate, outpacing the national average [9] - The Texas Workforce Commission reported a record high of over 14.1 million seasonally adjusted employees in January 2024 [8] Strategic Direction and Industry Competition - The company continues to focus on modernizing its natural gas distribution, transmission, and storage systems to become the safest provider of natural gas services [7] - Regulatory filings have resulted in $167 million in annualized outcomes, with additional filings planned to seek $340 million to $370 million in annualized operating income increases [17] - The company remains committed to organic growth and system modernization, with limited interest in M&A due to strong organic growth and favorable regulatory constructs [50] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenging weather conditions and praised employees for their dedication to customer service [7] - The company expects fiscal 2024 EPS to be in the range of $6.45 to $6.65, inclusive of the favorable impact of property tax legislation changes in Texas [19] - Management remains confident in the company's ability to sustain success through operational, financial, and regulatory execution [19] Other Important Information - The company is cooperating with the National Transportation Safety Board in investigating an incident in Jackson, Mississippi, that resulted in one fatality [13] - The company completed over $1.1 billion in long-term debt and equity financing in Q1 2024, maintaining a strong balance sheet with 60% equity capitalization and $3.2 billion in available liquidity [18] Q&A Session Summary Property Tax Impact - The property tax legislation in Texas is expected to reduce property tax expenses by $20 million to $22 million in fiscal 2024, with an EPS impact of $0.09 to $0.11 [24][25] - The benefit is temporary and will be returned to customers over the next two and a half years [42] Customer Growth Expectations - Customer additions are expected to pick up in the spring, driven by strong demand in the Dallas-Fort Worth Metroplex and diversified industrial growth [27][28] Rate Cases - General rate cases in West Texas and MidTex are expected to be routine, with no contentious issues anticipated [30] O&M and Inflation - The company remains comfortable with its O&M expense range of 3% to 3.5%, despite inflationary pressures [35] Winter Storm Performance - The company performed well during a historic winter storm, with natural gas meeting 85% of energy demand during the period [37][38] M&A Philosophy - The company remains focused on organic growth and system modernization, with no plans for M&A due to strong growth and favorable regulatory constructs [50] Legislative Updates - The company is monitoring legislative sessions but has no significant updates at this time [53] Bad Debt Expense - The $14 million reduction in bad debt expense in Q1 2024 was reflected in the company's guidance and is not expected to impact future periods [58]

Atmos Energy (ATO) posted first-quarter fiscal 2024 earnings of $2.08 per share, which missed the Zacks Consensus Estimate of $2.09 by 0.47%. However, the bottom line improved by 8.9% from the year-ago quarter’s $1.91 per share.The year-over-year increase in earnings was due to rate-case outcomes in both the Distribution and Pipeline and Storage segments and customer growth in the Distribution segment. This was partially offset by increased depreciation expenses and higher interest expenses.RevenuesTotal re ...