Atmos Energy Corporation (NYSE:ATO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Atmos Energy from its eleven analysts is for revenues of US$5.3b in 2025 which, if met, would be a decent 18% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be US$7.21, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of US$4.7b and earnings per share (EPS) of US$7.20 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.
Check out our latest analysis for Atmos Energy
It may not be a surprise to see that the analysts have reconfirmed their price target of US$158, implying that the uplift in sales is not expected to greatly contribute to Atmos Energy's valuation in the near term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Atmos Energy's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Atmos Energy is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Atmos Energy.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Atmos Energy going out to 2027, and you can see them free on our platform here..
We also provide an overview of the Atmos Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.