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Atmos Energy’s Revenue Rises, Income Falls in 4Q15

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Atmos Energy’s price movement

Atmos Energy (ATO) has a market capitalization of $6.4 billion. Atmos’s YTD (year-to-date) price movement is rising from September 2015.

After its 4Q15 earnings report, Atmos fell by 0.24% to close at $63.04 per share as of November 4, 2015. Its price movements on a weekly, monthly, and YTD basis are 1.3%, 7.6%, and 15.5%, respectively.

Atmos’s stock broke the support of its 20-day, 50-day, and 200-day moving averages until September 2015. Currently, it’s trading at 3.8% above its 20-day moving average, 9.3% above its 50-day moving average, and 15.4% above its 200-day moving average.

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The PowerShares DWA Utilities Momentum ETF (PUI) invests 2.5% of its holdings in Atmos. The ETF tracks an index of US utility companies selected and weighted by price momentum. The YTD price movement of PUI is -3.5% as of November 3, 2015. The PowerShares S&P MidCap Low Volatility ETF (XMLV) invests 1.2% of its holdings in Atmos.

Atmos Energy’s competitors and their market capitalizations are as follows:

  • Xcel Energy (XEL) — $18.3 billion
  • CenterPoint Energy (CNP) — $8.0 billion
  • ONEOK (OKE) — $7.0 billion
  • NiSource (NI) — $6.2 billion

Atmos Energy in 4Q15 and fiscal 2015

Atmos Energy reported a 4Q15 gross profit of $354.3 million, a 4.9% rise when compared to its gross profit of $337.7 million in 4Q14. Gross profit from its regulated distribution and regulated pipeline segments rose by 2.6% and 13.3%, respectively, and gross profit from its nonregulated segment fell by 5.0% in 4Q15 as compared to 4Q14.

The company’s 4Q15 net income fell to $23.5 million, a fall of 0.83% as compared to a net income of $23.7 million in 4Q14. Its EPS (earnings per share) remained the same, at $0.23 per share in 4Q15 and 4Q14. Atmos declared a quarterly dividend of 39 cents on its common stock.

The company promoted Michael Haefner as president and chief operating officer of Atmos Energy’s utilities divisions in eight states. Marvin L. Sweetin was named senior vice president of safety and utility services.

In fiscal 2015, Atmos’s gross profit rose to $1,680.0 million, a rise of 6.2% on a yearly basis. Gross profit from its regulated distribution and regulated pipeline segments rose by 5.2% and 16.2%, respectively. Gross profit from its nonregulated segment fell by 17.2% in fiscal 2015.

The company reported net income and EPS of $315.1 million and $3.09, respectively, in fiscal 2015, rises of 8.7% and 4.4% when compared to net income and EPS of $289.8 million and $2.96 in fiscal 2014.

Gas stored underground and cash and cash equivalents fell by 15.2% and 32.2%, respectively, in fiscal 2015. The company’s current ratio fell to 0.54 in fiscal 2015 from 0.85 in fiscal 2014.

The company has projected the following numbers for fiscal 2016:

  • Diluted EPS: $3.20–$3.40
  • Net income from regulated operations: $315–$335 million
  • Net income from nonregulated operations: $14–$19 million

About Atmos Energy

Atmos Energy is a natural gas distributor. It has utility operations in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas, and Virginia.

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