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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.
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'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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NiSource (NI) Lags Q3 Earnings & Revenues, Offers '17 View
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
NISOURCE INC Price, Consensus and EPS Surprise | NISOURCE INC Quote
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).
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>>