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NiSource's (NI) Q2 Earnings Lag Estimates, Revenues Rise Y/Y

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NiSource Inc (NI - Free Report) delivered net operating earnings of 13 cents per share in second-quarter 2021, missing the Zacks Consensus Estimate of 14 cents by a penny. The same came in line with the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of 11 cents per share against the loss figure of 5 cents in the year-ago quarter.

Total Revenues

Total operating revenues of $986 million generated in the second quarter lagged the Zacks Consensus Estimate of $1,121 million by 12%. However, the top line improved 2.4% from $962.7 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 3.1% year over year to $843.8 million.

Net interest expenses in the reported quarter decreased 12.9% from the prior-year quarter’s figure to $84.5 million.

The utility received more than 180 proposals for the 2021 Integrated Resource Plan (IRP) process. Also, new gas base rate cases were filed in Ohio, Kentucky and Maryland in the reported quarter.

Financial Update

NiSource's cash and cash equivalents as of Jun 30, 2021 were $77.5 million, down from $116.5 million as of Dec 31, 2020.

Long-term debts (excluding amounts due within a year) as of Jun 30, 2021 were $9,201.6 million compared with $9,219.8 million as of Dec 31, 2020.

Net cash flows from operating activities in the first two quarters of 2021 were $703 million compared with $707.7 million in the comparable period of 2020.

In April, the company executed its plan to issue equity units worth $862.5 million.

Outlook

NiSource reaffirmed its prior 2021 non-GAAP net operating earnings guidance in the range of $1.32-$1.36 per share. It expects earnings to see a CAGR of 7-9% from 2021 through 2024 including near-term annual growth of 5-7% through 2023.

For the ongoing year, it plans to spend in the band of $1.9-$2.1 billion. Through 2024, the utility anticipates investing $1.9-$2.2 billion annually in growth, safety and modernization along with $2 billion in renewable-generation assets. These investments are likely to improve rate base, which is likely to witness a CAGR of 10-12% for each of its businesses through 2024.

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

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate.

DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.

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