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NiSource (NI) to Report Q4 Earnings: What's in the Offing?

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NiSource, Inc (NI - Free Report) is scheduled to release fourth-quarter 2020 earnings on Feb 17, before the market opens. The company delivered an earnings surprise of 109.46% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

With the revival of economic activities, demand from NiSource’s Commercial and Industrial (C&I) group is gradually returning to the pre-pandemic levels. Also, continuously improving demand from residential customers is likely to have prevailed in the December quarter. Further, the utility’s cost-management and regulatory solutions are likely to have supported its financials.

Moreover, the new gas rates that were effective in September and December 2020 are likely to positively impact the upcoming earnings results. Also, management informed that the company utilized $1.1 billion of net proceeds to pay debt, reducing its outstanding obligations and capital servicing costs in the fourth quarter.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2020 sales is pegged at $1.48 billion, which indicates an increase of 6.07% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 32 cents, which indicates a decline of 28.89% from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for NiSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

NiSource, Inc Price and EPS Surprise

NiSource, Inc Price and EPS Surprise

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

Earnings ESP: NiSource has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NiSource carries a Zacks Rank #4 (Sell).

 

Stocks to Consider

Here are some companies worth considering from the same sector, which according to our model, have the right combination of elements to beat on earnings in the upcoming releases.

ONE Gas, Inc. (OGS - Free Report) is set to release fourth-quarter 2020 results on Feb 17. It has an Earnings ESP of +2.36% and is Zacks #3 Ranked, presently.

Exelon Corporation (EXC - Free Report) is set to release fourth-quarter 2020 results on Feb 24. It has an Earnings ESP of +2.34% and is a #3 Ranked player at present.

Essential Utilities Inc. (WTRG - Free Report) is set to release fourth-quarter 2020 results on Feb 24. It has an Earnings ESP of +2.20% and a Zacks Rank of 3 at present.

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