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NiSource (NI) Q3 Earnings: Can the Stock Pull a Surprise?
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NiSource Inc. (NI - Free Report) is set to report third-quarter 2016 results before the opening bell on Nov 1. Last quarter, the company posted a positive earnings surprise of 14.29%, bringing the trailing four-quarter average to 54.83%. Let’s see how things are shaping up for this announcement.
Factors at Play
Above-average temperatures in its service territories – Gulf Coast, Midwest & New England – in the third quarter are expected to drive top-line growth.
Further, NiSource has a 100% regulated utility business model. A constructive regulatory environment in its service territories will enable the company to keep up infrastructural investments.
Moreover, the company has received regulatory approval for both the Northern Indiana Public Service Company (NIPSCO) electric base rate case and the long-term electric infrastructure modernization program, which will drive top-line growth.
Our proven model does not conclusively show that NiSource is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat consensus estimates. However, that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 8 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: NiSource currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the utility-electric power space that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season:
Pattern Energy Group, Inc. has an Earnings ESP of +16.67% and a Zacks Rank #2. The company is slated to report second-quarter 2016 results on Nov 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank #2. The company is slated to announce third-quarter 2016 earnings on Nov 4.
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. The company is set to announce third-quarter 2016 earnings on Nov 1.
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NiSource (NI) Q3 Earnings: Can the Stock Pull a Surprise?
NiSource Inc. (NI - Free Report) is set to report third-quarter 2016 results before the opening bell on Nov 1. Last quarter, the company posted a positive earnings surprise of 14.29%, bringing the trailing four-quarter average to 54.83%. Let’s see how things are shaping up for this announcement.
Factors at Play
Above-average temperatures in its service territories – Gulf Coast, Midwest & New England – in the third quarter are expected to drive top-line growth.
Further, NiSource has a 100% regulated utility business model. A constructive regulatory environment in its service territories will enable the company to keep up infrastructural investments.
Moreover, the company has received regulatory approval for both the Northern Indiana Public Service Company (NIPSCO) electric base rate case and the long-term electric infrastructure modernization program, which will drive top-line growth.
NISOURCE INC Price and EPS Surprise
NISOURCE INC Price and EPS Surprise | NISOURCE INC Quote
Earnings Whispers
Our proven model does not conclusively show that NiSource is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat consensus estimates. However, that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 8 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: NiSource currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the utility-electric power space that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season:
Pattern Energy Group, Inc. has an Earnings ESP of +16.67% and a Zacks Rank #2. The company is slated to report second-quarter 2016 results on Nov 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank #2. The company is slated to announce third-quarter 2016 earnings on Nov 4.
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. The company is set to announce third-quarter 2016 earnings on Nov 1.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>