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NiSource's (NI) Q3 Earnings Beat Estimates, Revenues Miss

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NiSource Inc (NI - Free Report) delivered net operating earnings of 9 cents per share in third-quarter 2020, which surpassed the Zacks Consensus Estimate of 2 cents by 85.7%. On a GAAP basis, the company reported a loss of 49 cents per share compared witha loss of 2 cents in the year-ago quarter.

Total Revenues

NiSource generated total net revenues of $897.5 million in the third quarter, which missed the Zacks Consensus Estimate of $971.7 million by 7.6%. Further, the top line dipped 3.3% from $927.9 million reported in the year-ago quarter.

NiSource, Inc Price, Consensus and EPS Surprise

NiSource, Inc Price, Consensus and EPS Surprise

NiSource, Inc price-consensus-eps-surprise-chart | NiSource, Inc Quote

Highlights of the Release

Total operating expenses in the quarter under review fell 8.7% year over year to $749.2 million.

Total interest expenses in the reported quarter decreased 0.7% from the prior-year quarter’s figure to $95.2 million.

Financial Update

NiSource's cash and cash equivalents as of Sep 30, 2020 were $58.6 million, down from $139.3 million as of Dec 31, 2019.

Long-term debts (excluding amounts due within a year) as of Sep 30 were $9,208.9 million compared with $7,856.2 million as of Dec 31, 2019.

Net cash flows from operating activities for the first nine months of 2020 were $858.6 million compared with $1,231.8 million for the first nine months of 2019.

Outlook

NiSource reaffirmed its 2020 CapEx guidance at $1.7-$1.8 billion and also retained its 2021 non GAAP net operating earnings in the range of $1.28-$1.36 per share. Also, it expects net operating earnings per share to see a CAGR of 7-9% from 2021 through 2024 including near-term annual growth of 5-7%  through 2023.

During the same time frame, the utility anticipates to invest $1.9-$2.2 billion annually in growth, safety and modernization along with $1.8-$2.0 billion investments in renewable generation assets.

Zacks Rank

NiSource currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Pinnacle West Capital Corporation’s (PNW - Free Report) adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.

Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.

FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%.

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