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NiSource (NI) Lags Q3 Earnings & Revenues, Offers '17 View

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NiSource Inc. (NI - Free Report) reported third-quarter 2016 operating earnings of 6 cents per share, missing the Zacks Consensus Estimate of 8 cents by a wide 25%. In the year-ago quarter, the company had recorded earnings of 6 cents.

On a GAAP basis, NiSource posted earnings of 7 cents per share, compared with the year-ago tally of 5 cents.

The difference between GAAP and operating earnings was due to the impact of a penny related to one-time non-recurring items.

 

Revenues

In the third quarter of 2016, NiSource's gross revenues of $853.9 million lagged the Zacks Consensus Estimate of $863 million by 1.1%. However, revenues were up from $821.1 million reported in the prior-year quarter.

NISOURCE INC Price, Consensus and EPS Surprise

 

Quarterly Highlights

NiSource's Gas Distribution sales increased 2.5% year over year to 168.6 million dekatherms (MMDth). Electric Operation sales inched up 0.6% to 4,527.3 gigawatt hours.

Cost of sales increased 4.4% year over year to $218.2 million.

Total operating expenses were $529 million, up 6.6%, primarily due to higher operation and maintenance expenses, and other taxes.

Interest expenses were $85 million, down 10.4% from the year-ago figure of $94.9 million.

Financial Position

As of Sep 30, 2016, NiSource's cash and cash equivalents were $16.1 million, compared with $15.5 million as of Dec 31, 2015.

NiSource's net cash from operating activities (continuing operation) in the first nine month of 2016 was $532 million, compared with $1,193.9 million in the year-ago period.

In the first nine month of 2016, the company's capital expenditure was $1,083.4 million, up 17.3% from $923.4 million in the year-ago period.

Guidance

NiSource issued its 2017 earnings guidance in the range of $1.12 to $1.18 per share. The company projects long-term annual earnings and dividend growth of 4–6%.

Management expects to spend nearly $1.5 billion in 2017 as planned utility infrastructure investments.

Upcoming Peer Releases

Ameren Corporation (AEE - Free Report) is scheduled to report third-quarter 2016 earnings on Nov 4, before the market opens. The Zacks Consensus Estimate stands at $1.38. The stock carries a Zacks Rank #2 (Buy).

Otter Tail Corporation (OTTR - Free Report) is scheduled to report third-quarter 2016 earnings on Nov 2, after the market closes. The Zacks Consensus Estimate stands at 45 cents. The stock carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

Pattern Energy Group Inc. is scheduled to report on Nov 7, before the market opens. The Zacks Consensus Estimate stands at a loss of 12 cents. The stock sports a Zacks Rank #2.

Zacks Rank

NiSource currently carries a Zacks Rank #3 (Hold).

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