Valued at $23.5 billion by market cap, Atmos Energy Corporation (ATO) operates as a natural gas distributor serving over 3 million customers across eight U.S. states. The Dallas, Texas-based utility giant operates extensive natural gas pipelines and storage systems to ensure energy delivery.

ATO is set to deliver its second-quarter results after the markets close on Wednesday, May 7. Ahead of the event, analysts expect the utility giant to report an adjusted EPS of $2.89, up 1.4% from $2.85 reported in the year-ago quarter. Meanwhile, the company has surpassed the Street’s bottom-line expectations in each of the past four quarters.

For the full fiscal 2025, ATO is expected to report an adjusted EPS of $7.19, marking a 5.3% increase from $6.83 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 7.9% year-over-year to $7.76 per share.

ATO stock prices have soared 33.8% over the past 52 weeks, significantly outperforming the Utility Select Sector SPDR Fund’s (XLU) 16.9% gains and the S&P 500 Index’s ($SPX) 9.4% returns during the same time frame.

Atmos Energy’s stock prices rose 1.9% in the trading session after the release of its Q1 results on Feb. 4. While the company’s distribution revenues observed a slight increase and remained mostly flat, its pipeline and storage revenues experienced a notable boost. Atmos’ overall topline for the quarter increased 1.5% year-over-year to $1.2 billion. Meanwhile, due to a drop in gas costs, the company observed a notable improvement in margins. This led to more than 13% year-over-year growth in net income to $351.9 million, and its EPS of $2.23 surpassed the consensus estimates by 1.4%, boosting investor confidence.

The consensus view on ATO stock remains moderately optimistic, with a “Moderate Buy” rating overall. Of the 13 analysts covering the stock, opinions include six “Strong Buys,” one “Moderate Buy,” and six “Holds.” As of writing, ATO is trading slightly below its mean price target of $159.90.