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NiSource (NI) Q2 Earnings Miss Estimates, Revenues Fall Y/Y
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NiSource Inc. (NI - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 11 cents, which missed the Zacks Consensus Estimate of 13 cents by 15.4%. The bottom line declined 8.3% from the year-ago quarter’s recorded figure of 12 cents.
On a GAAP basis, the company reported EPS of 9 cents compared with 12 cents in the prior-year period.
Total Revenues
Operating revenues of $1,090 million missed the Zacks Consensus Estimate of $1,157 million by 5.8%. The top line also decreased 7.9% from the prior-year quarter’s figure of $1,183.2 million.
Total operating expenses in the quarter amounted to $921.1 million, down 11.4% from the year-ago quarter’s level of $1,039.9 million due to lower energy costs. Our model predicted total operating expenses of $964.4 million for the same quarter.
Operating income totaled $168.9 million, up 17.9% from the prior-year period’s figure of $143.3 million.
Net interest expenses amounted to $110.5 million, up 30.8% from the prior-year quarter’s figure of $84.5 million. Our model predicted net interest expenses of $109.5 million for the same quarter.
Total gas distribution in Sales and Transportation was recorded at 194.1 Million British Thermal Units per day (MMDth) while our model predicted the same at 189.4 MMDth.
Total electric sales were recorded at 3,628.7 gigawatt-hour (GWh) while our model projected the same at 3,706.5 GWh.
Financial Update
NiSource's cash and cash equivalents as of Jun 30, 2023, were $151.3 million compared with $40.8 million as of Dec 31, 2022. The company had $1.8 billion in net available liquidity as of Jun 30, 2023.
Long-term debts (excluding those due within a year) as of Jun 30, 2023, were $11,002.8 million compared with $9,523.6 million as of Dec 31, 2022.
Net cash flows from operating activities in the first six months of 2023 were $1,191 million compared with $907.2 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. It now expects earnings to be toward the upper end of the range. The Zacks Consensus Estimate for the same is pegged at $1.59 per share, which is higher than the midpoint of the company’s guided range. NI expects to witness an earnings CAGR of 6-8% through 2027.
It also projects an investment of $15 billion during 2023-2027.
Alliant Energy Corporation (LNT - Free Report) is slated to report second-quarter results on Aug 3, after market close. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share.
LNT’s long-term (three to five years) earnings growth rate is 6.47%. The consensus estimate for 2023 EPS is pegged at $2.87, indicating a year-over-year improvement of 2.5%.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
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NiSource (NI) Q2 Earnings Miss Estimates, Revenues Fall Y/Y
NiSource Inc. (NI - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 11 cents, which missed the Zacks Consensus Estimate of 13 cents by 15.4%. The bottom line declined 8.3% from the year-ago quarter’s recorded figure of 12 cents.
On a GAAP basis, the company reported EPS of 9 cents compared with 12 cents in the prior-year period.
Total Revenues
Operating revenues of $1,090 million missed the Zacks Consensus Estimate of $1,157 million by 5.8%. The top line also decreased 7.9% from the prior-year quarter’s figure of $1,183.2 million.
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 amounted to $921.1 million, down 11.4% from the year-ago quarter’s level of $1,039.9 million due to lower energy costs. Our model predicted total operating expenses of $964.4 million for the same quarter.
Operating income totaled $168.9 million, up 17.9% from the prior-year period’s figure of $143.3 million.
Net interest expenses amounted to $110.5 million, up 30.8% from the prior-year quarter’s figure of $84.5 million. Our model predicted net interest expenses of $109.5 million for the same quarter.
Total gas distribution in Sales and Transportation was recorded at 194.1 Million British Thermal Units per day (MMDth) while our model predicted the same at 189.4 MMDth.
Total electric sales were recorded at 3,628.7 gigawatt-hour (GWh) while our model projected the same at 3,706.5 GWh.
Financial Update
NiSource's cash and cash equivalents as of Jun 30, 2023, were $151.3 million compared with $40.8 million as of Dec 31, 2022. The company had $1.8 billion in net available liquidity as of Jun 30, 2023.
Long-term debts (excluding those due within a year) as of Jun 30, 2023, were $11,002.8 million compared with $9,523.6 million as of Dec 31, 2022.
Net cash flows from operating activities in the first six months of 2023 were $1,191 million compared with $907.2 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. It now expects earnings to be toward the upper end of the range. The Zacks Consensus Estimate for the same is pegged at $1.59 per share, which is higher than the midpoint of the company’s guided range. NI expects to witness an earnings CAGR of 6-8% through 2027.
It also projects an investment of $15 billion during 2023-2027.
Zacks Rank
NiSource currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Alliant Energy Corporation (LNT - Free Report) is slated to report second-quarter results on Aug 3, after market close. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share.
LNT’s long-term (three to five years) earnings growth rate is 6.47%. The consensus estimate for 2023 EPS is pegged at $2.87, indicating a year-over-year improvement of 2.5%.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.