Atmos Energy Corporation ATO is scheduled to release second-quarter fiscal 2026 results on May 6, after market close. In the last reported quarter, the company delivered an earnings surprise of 1.24%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors That May Have Influenced ATO’s Q2 Earnings
Atmos Energy’s fiscal second-quarter earnings are likely to have benefited from strong demand from its 3.4 million customers, along with its diversified and expanding jurisdictional footprint.
Investments aimed at modernizing transmission and distribution infrastructure may have boosted system reliability, enhanced service quality and contributed to Atmos Energy’s bottom line in the quarter to be reported.
New rate implementations and constructive regulatory mechanisms across ATO’s service regions are likely to have strengthened its bottom-line performance. Higher distribution revenues also seem to contribute to the company’s quarterly results.
However, higher operation and maintenance expenses may have partially reduced some of the gains in the quarter to be reported.
Fiscal Q2 Expectations for ATO
The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, indicating a year-over-year increase of 10.9%.
The Zacks Consensus Estimate for revenues is pinned at $2.22 billion, implying a year-over-year improvement of 13.7%.
What Our Quantitative Model Predicts for ATO
Our proven model predicts an earnings beat for Atmos Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is +0.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may consider the following players from the same sector, as these also have the right combination of elements to post an earnings beat this reporting cycle.
ONE Gas, Inc. OGS is slated to report its first-quarter 2026 results on May 4, after market close. It has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present.
OGS’ long-term (three to five years) earnings growth rate is 6.23%. The Zacks Consensus Estimate for earnings stands at $2.13 per share, which implies a year-over-year increase of 7.6%.
Duke Energy Corporation DUK is slated to report its first-quarter 2026 results on May 5, before market open. It has an Earnings ESP of +1.31% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings stands at $1.79 per share, which implies a year-over-year rise of 1.7%. The Zacks Consensus Estimate for sales is pegged at $8.40 billion, which calls for a year-over-year improvement of 1.8%.
NiSource Inc. NI is scheduled to report its first-quarter 2026 results on May 6, before market open. It has an Earnings ESP of +2.34% and a Zacks Rank of 3 at present.
NI’s long-term earnings growth rate is 6.11%. The Zacks Consensus Estimate for earnings stands at $1.03 per share, which suggests a year-over-year rise of 5.1%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NiSource, Inc (NI): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
Atmos Energy Corporation (ATO): Free Stock Analysis Report
ONE Gas, Inc. (OGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).