Analyst Note| Andrew Bischof, CFA, CPA |
We are reaffirming our $98 per share fair value estimate after Atmos reported fiscal-year 2021 operating earnings of $5.12 per share, compared with $4.72 in fiscal 2020. Earnings were slightly ahead of management's full-year guidance of $4.90 to $5.10. The company increased its dividend 8.8%, a growth rate among the highest of its utility peers, to $2.72 per share annualized representing a 2.9% dividend yield as of mid-November. Our narrow moat and stable moat trend remain unchanged.