AT

Atmos Energy Corporation stock research

Dec 31, 2024

FY2025 Q1

Atmos Energy (ATO) Gross Margin — Quarter Ended Dec 31, 2024

Revenue was unchanged compared to the same quarter one year earlier, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Compared to the immediately preceding quarter, revenue increased, but gross profit and cost of revenue for that quarter were not supplied.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2025 Q1

Revenue was unchanged compared to the same quarter one year earlier, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Compared to the immediately preceding quarter, revenue increased, but gross profit and cost of revenue for that quarter were not supplied.

  • The gross margin strengthened compared to the same quarter last year, driven by a lower cost of revenue relative to revenue. This is the strongest observable driver in the supplied data.
  • Revenue was stable versus the year-ago quarter, but gross profit increased and cost of revenue decreased, leading to an improved gross margin. The prior quarter's gross profit and cost of revenue are missing, so a full comparison is not possible.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

80.1%

Gross profit

$942.0M

Revenue

$1.2B

Cost of revenue

$234.0M

Quarter-over-quarter change

+18.0 pts

Year-over-year change

+9.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$587.6M$584.5M$3.2M99.5%
Dec 31, 2023$1.2B$819.6M$338.9M70.7%
Mar 31, 2024$1.6B$1.0B$624.3M62.1%
Dec 31, 2024$1.2B$942.0M$234.0M80.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+18.0 pts

Year-over-year change

Dec 31, 2023

+9.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin strengthened compared to the same quarter last year, driven by a lower cost of revenue relative to revenue. This is the strongest observable driver in the supplied data.

Revenue was stable versus the year-ago quarter, but gross profit increased and cost of revenue decreased, leading to an improved gross margin. The prior quarter's gross profit and cost of revenue are missing, so a full comparison is not possible.

Monitor the trend in cost of revenue, as its decline was the primary factor behind the gross margin improvement.

ATO Gross Margin — Quarter Ended Dec 31, 2024