Key Takeaways:
Atmos Energy Corp. raised its full-year profit forecast after reporting second-quarter earnings that beat analyst estimates by nearly 12 percent, driven by strong demand for its natural gas pipeline and storage services.
"The results reflect the benefits of our consistent strategy of investing in the safety and reliability of our natural gas distribution and pipeline and storage system," the company said in a statement.
The Dallas-based utility reported net income of $582 million, or $3.47 per share, for the three months ended March 31, up from $486 million, or $3.03 per share, a year earlier. While revenue of $1.96 billion missed the Zacks Consensus Estimate by 12.33 percent, it still represented a slight increase from the year-ago figure of $1.95 billion.
Shares of Atmos have gained about 11.7 percent since the beginning of the year. The company now forecasts a full-year profit of between $8.40 to $8.50 a share, up from its previous outlook of $8.15 to $8.35 per share and above the analyst consensus of $8.25.
The company's performance was bolstered by significant growth in its pipeline and storage unit, which saw operating income rise 37 percent to $198.9 million. The distribution segment's operating income also grew by 17 percent to $565.9 million. Atmos distributes natural gas to over 3.3 million customers across eight states, and has benefited from increased electricity demand partly driven by the power needs of artificial intelligence infrastructure.
The guidance raise suggests management anticipates continued robust demand for its services. Investors will look to the upcoming earnings call for more details on the company's capital investment plans and management's outlook on natural gas demand trends.
This article is for informational purposes only and does not constitute investment advice.
