NiSource (NI) Misses on Q4 Earnings, Reaffirms 2017 View

NEE NI AEP WEC

NiSource Inc. (NI - Free Report) reported fourth-quarter 2016 operating earnings of 33 cents per share, missing the Zacks Consensus Estimate of 34 cents by 2.9%. In the year-ago quarter, the company had recorded earnings of 31 cents.

On a GAAP basis, NiSource posted earnings of 28 cents per share compared with the year-ago tally of 20 cents.

The difference between GAAP and operating earnings was due to the impact of 5 cents related to one-time non-recurring items.

Full-year operating earnings came in at $1.09, on par with the Zacks Consensus Estimate. Yearly earnings grew 16% year over year.

Full-year GAAP earnings came at $1.02, up 62% from 63 cents in the prior-year period.

 

 

Revenues

In the fourth quarter of 2016, NiSource's net revenues of $863.6 million lagged the Zacks Consensus Estimate of $1,138 million by 24.1%. However, revenues were up 9.5% from $788.5 million reported in the prior-year quarter.

Full-year 2016 net revenues came in at $3,114.7 million, lagging the Zacks Consensus Estimate of $4,240 million by 26.5%. However, yearly revenues grew 3% year over year.

Quarterly Highlights

Total operating expenses were $609.7 million, 13% higher primarily due to higher operation and maintenance expenses, and other taxes.

Operating income came in at $253.9 million, up 2%.

Interest expenses were $88 million, down 6.7% from the year-ago figure of $94.3 million.

Financial Position

As of Dec 31, 2016, NiSource's cash and cash equivalents were $26.4 million, compared with $15.5 million as of Dec 31, 2015.

Long-term debt as of Dec 31, 2016 was $6,058.2 million, up 1.8%.

NiSource's net cash from operating activities (continuing operation) in 2016 was $803.3 million compared with $1,456.8 million in the year-ago period.

Guidance

NiSource has reaffirmed its 2017 earnings guidance in the range of $1.12–$1.18 per share.

Management expects to spend nearly $1.6–$1.7 billion in 2017 as planned utility infrastructure investments, up from the prior guidance of $1.5 billion.

Other Utility Releases

American Electric Power Co., Inc. (AEP - Free Report)  reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. (NEE - Free Report)  reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

WEC Energy Group (WEC - Free Report)  reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny below both the Zacks Consensus Estimate and the year-ago figure of 62 cents.

Zacks Rank

NiSource currently carries a Zacks Rank #4 (Sell).

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

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