We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is NiSource (NI) Up 1.9% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NiSource's Q3 Earnings Beat Estimates, Revenues Miss
NiSource Inc. 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 with a 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.
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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted -11.39% due to these changes.
VGM Scores
Currently, NiSource has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NiSource has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is NiSource (NI) Up 1.9% Since Last Earnings Report?
It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NiSource's Q3 Earnings Beat Estimates, Revenues Miss
NiSource Inc. 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 with a 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.
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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted -11.39% due to these changes.
VGM Scores
Currently, NiSource has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NiSource has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.