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NiSource (NI) Up 7.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NiSource Inc. reported fourth-quarter 2021 operating earnings per share (EPS) of 39 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 3%. The bottom line also improved 15% from the year-ago quarter’s earnings of 34 cents per share.
On a GAAP basis, NiSource reported fourth-quarter 2021 operating EPS of 36 cents, up 100% from 18 cents.
NiSource reported operating EPS of $1.37 in 2021, up 3.8% from $1.32 in 2020. Total revenues also surpassed the Zacks Consensus Estimate of $1.35 per share by 15%.
Total Revenues
Operating revenues of $1,408.6 million missed the Zacks Consensus Estimate of $1,465 million by 3.8%. However, the top line improved 16% from $1,211 million in the prior-year quarter.
NiSource reported total revenues of $4,899.6 million in 2021, up 2.2% from $4,681.7 million in 2020, which missed the Zacks Consensus Estimate of $4,940 million by 0.8%
Highlights of the Release
Total operating expenses for the fourth quarter amounted to $1,118.5 million, up 17% from the year-ago quarter’s $954.9 million, due to the higher cost of energy, operating and maintenance trackers and taxes.
Operating income was $304 million, up 19.2% from the year-ago figure of $255.1 million.
Net interest expenses in the reported quarter were up 2.3% from the prior-year quarter’s figure to $87.6 million.
In the reported quarter, NI reached a settlement for the Columbia Gas of Kentucky 2021 base rate case. The settlement increased revenues by $18.3 million and will continue to support investments in safety and replace the aging infrastructure.
Financial Update
NiSource's cash and cash equivalents as of Dec 31, 2021 were $84.2 million, down from $116.5 million as of Dec 31, 2020.
Long-term debts (excluding amounts due within a year) as of Dec 31, 2021 were $9,183.4 million compared with $9,219.8 million as of Dec 31, 2020.
Net cash flows from operating activities in 2021 were $1,218 million compared with $1,104 million in 2020.
Guidance
NiSource reiterated the 2022 non-GAAP net operating earnings guidance in the range of $1.42-$1.48 and expects earnings to witness a CAGR of 7-9% from 2021 through 2024, including a near-term annual growth rate of 5-7% through 2023.
NiSource plans to make capital investments of nearly $10 billion during the 2021-2024 period. Through 2024, the utility anticipates investing the $1.9-$2.2 billion range annually in growth, safety and modernization along with $2 billion in renewable-generation assets. These investments are likely to improve the rate base, which is likely to witness a CAGR of 10-12% for each of NI’s businesses until 2024.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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NiSource (NI) Up 7.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NiSource Q4 Earnings Beat Estimates, Revenues Rise Y/Y
NiSource Inc. reported fourth-quarter 2021 operating earnings per share (EPS) of 39 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 3%. The bottom line also improved 15% from the year-ago quarter’s earnings of 34 cents per share.
On a GAAP basis, NiSource reported fourth-quarter 2021 operating EPS of 36 cents, up 100% from 18 cents.
NiSource reported operating EPS of $1.37 in 2021, up 3.8% from $1.32 in 2020. Total revenues also surpassed the Zacks Consensus Estimate of $1.35 per share by 15%.
Total Revenues
Operating revenues of $1,408.6 million missed the Zacks Consensus Estimate of $1,465 million by 3.8%. However, the top line improved 16% from $1,211 million in the prior-year quarter.
NiSource reported total revenues of $4,899.6 million in 2021, up 2.2% from $4,681.7 million in 2020, which missed the Zacks Consensus Estimate of $4,940 million by 0.8%
Highlights of the Release
Total operating expenses for the fourth quarter amounted to $1,118.5 million, up 17% from the year-ago quarter’s $954.9 million, due to the higher cost of energy, operating and maintenance trackers and taxes.
Operating income was $304 million, up 19.2% from the year-ago figure of $255.1 million.
Net interest expenses in the reported quarter were up 2.3% from the prior-year quarter’s figure to $87.6 million.
In the reported quarter, NI reached a settlement for the Columbia Gas of Kentucky 2021 base rate case. The settlement increased revenues by $18.3 million and will continue to support investments in safety and replace the aging infrastructure.
Financial Update
NiSource's cash and cash equivalents as of Dec 31, 2021 were $84.2 million, down from $116.5 million as of Dec 31, 2020.
Long-term debts (excluding amounts due within a year) as of Dec 31, 2021 were $9,183.4 million compared with $9,219.8 million as of Dec 31, 2020.
Net cash flows from operating activities in 2021 were $1,218 million compared with $1,104 million in 2020.
Guidance
NiSource reiterated the 2022 non-GAAP net operating earnings guidance in the range of $1.42-$1.48 and expects earnings to witness a CAGR of 7-9% from 2021 through 2024, including a near-term annual growth rate of 5-7% through 2023.
NiSource plans to make capital investments of nearly $10 billion during the 2021-2024 period. Through 2024, the utility anticipates investing the $1.9-$2.2 billion range annually in growth, safety and modernization along with $2 billion in renewable-generation assets. These investments are likely to improve the rate base, which is likely to witness a CAGR of 10-12% for each of NI’s businesses until 2024.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.