Back to top

Image: Bigstock

Is a Beat in Store for NiSource (NI) This Earnings Season?

Read MoreHide Full Article

NiSource Inc.(NI - Free Report) is scheduled to release fourth-quarter 2018 results on Feb 20, before market opens. In the last four quarters, the company delivered average positive earnings surprise of 11.90%.

What Does the Zacks Model Say?

Our proven model shows that NiSource is likely to beat estimates as it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Earnings ESP: The company has Earnings ESP of +1.35%. 

Zacks Rank: NiSource currently carries a Zacks Rank #3. The combination of NiSource’s Zacks Rank #3 and +1.35% ESP makes us confident of an earnings beat in the upcoming quarterly results.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions. 

NiSource, Inc Price and EPS Surprise

 

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

 

Factors at Play

NiSource’s 100% regulated utility business model continues to invest in infrastructure modernization plan. The company recovers 75% of infrastructure investments in less than 12 months, which provides a clear visibility of earnings in the future. NiSource will gain in the fourth quarter from the new gas distribution rates in Indiana, effective from Oct 1.

The Zacks Consensus Estimate for fourth-quarter 2018 revenues is pegged at $1.40 billion, reflecting a rise of 2.35% on a year-over-year basis. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 37 cents, which reflects year-over-year increase of 12.12%.

Other Stocks to Consider

Investors can also consider the following players from the same industry, which also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

OGE Energy Corporation (OGE - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is expected to release fourth-quarter 2018 results on Feb 21.

Alliant Energy Corporation (LNT - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is expected to release fourth-quarter 2018 results on Feb 21

Pinnacle West Capital Corporation (PNW - Free Report)  has an Earnings ESP of +4.17% and a Zacks Rank #2. The company is expected to release fourth-quarter 2018 results on Feb 22.

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