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Why Is NiSource (NI) Up 8.1% Since the Last Earnings Report?
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It has been about a month since the last earnings report for NiSource, Inc (NI - Free Report) . Shares have added about 8.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NiSource Earnings, Revenues Beat Q1 Estimates
NiSource reported first-quarter 2017 operating earnings of $0.71 per share, surpassing the Zacks Consensus Estimate of $0.65 by 9.2%. Earnings also increased 14.5% year over year.
The company reported GAAP earnings of $0.65 per share compared with $0.58 in the year-ago period. The difference between the GAAP and operating earnings was due to a $0.06 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.
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.
How Have Estimates Been Moving Since Then?
It turns out that fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 18.2% due to these changes.
At this time, NiSource's stock has a nice Growth Score of 'B', though it lags a lot on the momentum front with an 'F'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is suitable for growth and value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months
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Why Is NiSource (NI) Up 8.1% Since the Last Earnings Report?
It has been about a month since the last earnings report for NiSource, Inc (NI - Free Report) . Shares have added about 8.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NiSource Earnings, Revenues Beat Q1 Estimates
NiSource reported first-quarter 2017 operating earnings of $0.71 per share, surpassing the Zacks Consensus Estimate of $0.65 by 9.2%. Earnings also increased 14.5% year over year.
The company reported GAAP earnings of $0.65 per share compared with $0.58 in the year-ago period. The difference between the GAAP and operating earnings was due to a $0.06 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.
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.
How Have Estimates Been Moving Since Then?
It turns out that fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 18.2% due to these changes.
NiSource, Inc Price and Consensus
NiSource, Inc Price and Consensus | NiSource, Inc Quote
VGM Scores
At this time, NiSource's stock has a nice Growth Score of 'B', though it lags a lot on the momentum front with an 'F'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is suitable for growth and value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months