It has been about a month since the last earnings report for NiSource (NI Quick QuoteNI - Free Report) . Shares have lost about 6% 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 its most recent earnings report in order to get a better handle on the important catalysts.

NiSource Q1 Earnings In Line With Estimates, Sales Beat

NiSource Inc. reported first-quarter 2023 operating earnings per share of 77 cents, which came in line with the Zacks Consensus Estimate. The bottom line improved 2.7% from the year-ago quarter’s recorded figure of 75 cents.

On a GAAP basis, the company reported EPS of 71 cents compared with 94 cents in the prior-year period.

Total Revenues

Operating revenues of $1,966 million outpaced the Zacks Consensus Estimate of $1,935 million by 1.6%. The top line also increased 5% from the prior-year quarter’s figure of $1,873.3 million.

Highlights of the Release

Total operating expenses in the quarter amounted to $1,435 million, up 12.7% from the year-ago quarter’s $1,273 million due to higher energy costs.

Operating income totaled $531 million, down 11.5% from the prior-year period’s level of $600.3 million.

Net interest expenses came in at $108.9 million, up 30.1% from the prior-year quarter’s figure of $83.7 million.

Financial Update

NiSource's cash and cash equivalents as of Mar 31, 2023, were $106.4 million compared with $40.8 million as of Dec 31, 2022. The company had $2.3 billion in net available liquidity as of Mar 31, 2023.

Long-term debts (excluding those due within a year) as of Mar 31, 2023 were $10,264.7 million compared with $9,523.6 million as of Dec 31, 2022.

Net cash flows from operating activities in first-quarter 2023 were $683.4 million compared with $579.8 million in the year-ago period.

Guidance

NiSource reaffirmed its 2023 non-GAAP net operating earnings guidance in the range of $1.54-$1.60 per share. The Zacks Consensus Estimate for the same is pegged at $1.57 per share, which is on par with the midpoint of the company’s guided range. NI expects to witness an earnings CAGR of 6-8% from 2024 through 2027.

It also projects an investment of $15 billion during 2023-2027.

 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, NiSource has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 #2 (Buy). We expect an above average return from the stock in the next few months.