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NiSource (NI) Earnings, Revenues Beat Q1 Estimates

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NiSource Inc. (NI - Free Report) reported first-quarter 2017 operating earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%. Earnings also increased 14.5% year over year.

The company reported GAAP earnings of 65 cents per share compared with 58 cents in the year-ago period. The difference between the GAAP and operating earnings was due to a 6 cent impact of one-time non-recurring items.

Revenues

In first-quarter 2017, NiSource’s gross revenues of $1,598.6 million surpassed the Zacks Consensus Estimate of $1,508 million by 6%. Revenues also increased 11.3% year over year from $1,436.6 million.

Quarterly Highlights

NiSource’s Gas Distribution sales decreased 5.2% year over year to 326.4 Million dekatherms (MMDth). The company’s sales from Electric Operations also declined nearly 2.5% to 4,064.5 gigawatt hours.

Cost of sales increased 11.2% year over year to $552.3 million.

Total operating expenses were $629.8 million, reflecting an increase of 12.7% year over year primarily due to higher operation and maintenance expenses.

Interest expenses were $85.2 million, decreased 5.9% from the year-ago figure.

NiSource, Inc Price, Consensus and EPS Surprise

NiSource, Inc Price, Consensus and EPS Surprise | NiSource, Inc Quote

Financial Position

As of Mar 31, 2017, NiSource’s cash and cash equivalents were $28.4 million compared with $23.7 million as of Dec 31, 2016.

In the first quarter of 2017, net cash from operating activities (continuing operation) was $411.1 million compared with $302.9 million in the year-ago period.

NiSource’s capital expenditure in the first quarter of 2017 was $312 million compared with $301 million in the year-ago period.

Guidance

NiSource reiterated the 2017 earnings guidance of $1.12 to $1.18 per share and expects to deliver results at the upper half of the guided range.

The company remains on track to complete $1.6–$1.7 billion of planned utility infrastructure investments in 2017.

Zacks Rank

NiSource has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Release

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2017 operating earnings per share of 96 cents, missing the Zacks Consensus Estimate of 97 cents by 1%.

DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating EPS of $1.79, which surpassed the Zacks Consensus Estimate of $1.57 by 14%.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2017 adjusted EPS of 71 cents, scoring above the Zacks Consensus Estimate of 65 cents by 9.2%.

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