A month has gone by since the last earnings report for NiSource (NI Quick QuoteNI - Free Report) . Shares have lost about 1.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is NiSource due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

NiSource's Q1 Earnings Meet Estimates, Revenues Miss

NiSource delivered net operating earnings of 77 cents per share in first-quarter 2021, in line with the Zacks Consensus Estimate. Meanwhile, the same improved 1.3% from the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of 72 cents per share, increasing 350% from the year-ago quarter.

Total Revenues

NiSource generated total net revenues of $1,545.6 million in the first quarter, which missed the Zacks Consensus Estimate of $1,919 million by 19%. Further, the top line dipped 4.7% from $1,631.8 million reported in the year-ago quarter.

Highlights of the Release

Total operating expenses in the quarter under review fell 6.8% year over year to $1,090 million.

Net interest expenses in the reported quarter decreased 8.9% from the prior-year quarter’s figure to $84.6 million.

Financial Update

NiSource's cash and cash equivalents as of Mar 31, 2021 were $89.1 million, down from $116.5 million as of Dec 31, 2020.

Long-term debts (excluding amounts due within a year) as of Mar 31, 2021 were $9,202.3 million compared with $9,219.8 million as of Dec 31, 2020.

Net cash flows from operating activities in first-quarter 2021 were $448.3 million compared with $369.9 million in the comparable period of 2020.

Outlook

NiSource narrowed its 2021 non-GAAP net operating earnings to the range of $1.32-$1.36 from the previous guidance of $1.28-$1.36 per share. Also, it expects earnings 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 investing $1.9-$2.2 billion annually in growth, safety and modernization. Also, it plans to invest $2 billion in renewable-generation assets through 2024.

How Have Estimates Been Moving Since Then?

Estimates revision followed a downward path over the past two months. The consensus estimate has shifted -23.53% due to these changes.

VGM Scores

At this time, NiSource has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, 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 #3 (Hold). We expect an in-line return from the stock in the next few months.