Benzinga | Feb 1, 2021 10:07AM EST

A Preview Of Atmos Energy's Earnings

Atmos Energy (NYSE:ATO) will be releasing its next round of earnings this Tuesday, February 02. For all of the relevant information, here is your guide for Tuesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Atmos Energy earnings will be near $1.58 per share on sales of $985.48 million, according to analysts. In the same quarter last year, Atmos Energy posted EPS of $1.47 on sales of $875.56 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be up 7.48%. Revenue would be up 12.55% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.51 0.76 1.93 1.49EPS Actual 0.53 0.79 1.95 1.47Revenue Estimate 603.47 M 580.96 M 1.18 B 971.70 MRevenue Actual 474.91 M 493.00 M 977.66 M 875.56 M

Stock Performance

Shares of Atmos Energy were trading at $89.04 as of January 29. Over the last 52-week period, shares are down 24.42%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Atmos Energy is scheduled to hold the call at 09:00:00 ET and can be accessed here.