Back to top

Image: Bigstock

NiSource (NI) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

NiSource Inc. (NI - Free Report) is scheduled to release third-quarter 2018 earnings results on Nov 1, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 22.22%.

Let’s see how things are shaping up for the utility prior to the earnings announcement.

Factors to Consider

NiSource’s 100% regulated utility business model with ongoing infrastructure modernization plan ensures quality services through improved system safety and reliability of existing operations. We believe that the company will gain from the program. The company recovers 75% of infrastructure investments in less than 12 months, which provides a clear visibility of future earnings. NiSource expects to invest $1.7-$1.8 billion in 2018.

The Zacks Consensus Estimate for third-quarter revenues of $946 million represents a surge of 3.17% on a year-over-year basis. However, the Zacks Consensus Estimate for third-quarter earnings per share is pegged at 6 cents, which reflects year-over-year decline of 14.3%.

Earnings Whispers

According to our proven model, a stock needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to beat estimates. However, NiSource does not have the correct combination to beat estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +3.45%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: NiSource carries a Zacks Rank #4 (Sell). The company’s favorable ESP when combined with the unfavorable Zacks Rank makes an earnings beat unlikely this season.

NiSource, Inc Price and EPS Surprise

 

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

 

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks That Warrant a Look

Here are a few operators from the same industry that have the right combination of elements to post an earnings beat this quarter.

Ameren Corporation (AEE - Free Report) is expected to release third-quarter results on Oct 31. It has an Earnings ESP of +8.65% and a Zacks Rank #2.

Dominion Energy Inc (D - Free Report) is expected to release third-quarter results on Nov 1. It has an Earnings ESP of +2.22% and a Zacks Rank #2.

Alliant Energy Corporation (LNT - Free Report) is expected to release third-quarter results on Nov 6. It has an Earnings ESP of +1.19% and a Zacks Rank #3.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in