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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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.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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