Earnings Analysis for ATO
Revenue Analysis
Total and Operating Revenue: Over the past quarters, ATO has exhibited fluctuations in both Total and Operating Revenues. As of 2023-12-31, Total Revenue peaked at $1,158,467,000, showing significant growth from $587,642,000 on 2023-09-30. A similar pattern is observed in Operating Revenue across the quarters.
Gross Profit: ATO’s Gross Profit also increased, reaching its highest at $680,046,000 as of 2023-03-31, compared to $423,134,000 on 2023-06-30. This trend reflects a positive outcome in revenue management within the analyzed period.
Cost Management
Cost of Revenue: Despite increasing revenues, ATO’s Cost of Revenue was high at $860,927,000 by 2023-03-31, indicating significant costs associated with revenue generation. However, there has been a relative decline in Costs of Revenue to $193,288,000 by 2023-09-30.
Operating Expense: Operating Expense showed a notable fluctuation with an amount of $254,148,000 on 2023-12-31 going up from $240,284,000 on 2023-09-30.
Total Expenses: Total Expenses followed a rising trend reaching $1,118,335,000 by 2023-03-31. This represents a significant increase and impacts the overall financial health.
Profitability Analysis
EBITDA: EBITDA stands at $581,599,000 as of 2023-12-31, which has significantly improved from $336,149,000 on 2023-06-30.
Operating Income: ATO’s Operating Income increased progressively reaching $399,105,000 by 2023-12-31.
Pretax Income: There was a noticeable improvement in Pretax Income from $154,089,000 in 2023-06-30 to $365,116,000 by the end of 2023.
Net Income Metrics: Net Income reflected positive growth, recorded at $311,292,000 by 2023-12-31, indicating good profitability.
Cash Flow Indicators
Reconciled Depreciation: The Reconciled Depreciation figures over the quarters remain fairly constant, highlighting significant non-cash deductions ranging near $159,264,000 as of 2023-09-30.
Interest Expense: Interest Expense presents a challenge, notably at $51,875,000 as of 2023-12-31, affecting cash flow negatively.
Taxation
Tax Rate for Calculations: The effective tax rate varied, being lowest at 0.106 as of 2023-06-30 and peaking at 0.147 by 2023-12-31.
Tax Provision: Concurrently, Tax Provision was $53,824,000 at the end of 2023, reflecting a proportionate tax liability.
Tax Effect of Unusual Items: Notably, there is no tax effect from unusual items throughout the periods, simplifying the tax implication analysis.
Shareholder Metrics
Diluted and Basic EPS: Both Diluted and Basic EPS exhibited growth, with a remarkable Diluted EPS of 2.48 as of 2023-03-31.
Average Shares: Average shares varied slightly with figures like 149,796,000 on 2023-12-31. This indicates stability in the equity structure.
Net Income Available to Common Stockholders: This amount was $311,106,000 by the end of 2023, suggesting strong returns to shareholders.
Conclusion
ATO has shown an increasing trend in revenue, stable cost management despite occasional spikes, consistent cash flow indicators and a strong profitability stance. It is recommended to potentially explore measures to reduce cost of revenue and interest expenses to boost net income further.