A week ago, Atmos Energy Corporation (NYSE:ATO) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$2.0b arriving 7.7% ahead of forecasts. Statutory earnings per share (EPS) were US$3.03, 5.0% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in Atmos Energy. Read for free now.NYSE:ATO Earnings and Revenue Growth May 11th 2025

Taking into account the latest results, the consensus forecast from Atmos Energy's eleven analysts is for revenues of US$5.29b in 2025. This reflects a decent 18% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$7.21, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$4.71b and earnings per share (EPS) of US$7.20 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Atmos Energy

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$158, implying that the uplift in revenue is not expected to greatly contribute to Atmos Energy's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Atmos Energy at US$172 per share, while the most bearish prices it at US$137. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Atmos Energy's growth to accelerate, with the forecast 39% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Atmos Energy to grow faster than the wider industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Atmos Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Atmos Energy analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Atmos Energy that you should be aware of.

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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.

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