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NiSource (NI) Up 4.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? 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 catalysts.
NiSource Q4 Earnings Beat Estimates, Revenues Lag
NiSource reported fourth-quarter 2023 operating earnings per share (EPS) of 53 cents, which surpassed the Zacks Consensus Estimate of 52 cents by 1.9%. The bottom line increased 6% from the year-ago quarter’s recorded figure of 50 cents. On a GAAP basis, the company reported an EPS of 50 cents compared with 52 cents in the prior-year quarter.
NI reported earnings of $1.60 for 2023 compared with $1.47 per share in 2022, which reflects a year-over-year increase of 8.8%.
Total Revenues
Operating revenues of $1.42 billion missed the Zacks Consensus Estimate of $1.58 billion by 10.3%. The top line also decreased 3.4% from the prior-year quarter’s figure of $1.7 billion.
NI reported total revenues of $5.5 billion for 2023 compared with $5.85 billion in 2022, which reflects a year-over-year decrease of 5.9%.
Highlights of the Release
Total operating expenses amounted to $1.06 billion, down 20.9% from the year-ago quarter’s level of $1.34 billion due to lower energy.
Operating income totaled $362.6 million, down 0.8% from the year-ago figure of $365.5 million.
Net interest expenses amounted to $141 million, up 38.5% from the prior-year quarter’s $101.8 million.
Total gas distribution in Sales and Transportation was recorded at 259.1 Million British Thermal Units per day (MMDth), down 3.6% from the prior-year quarter’s 268.7 MMDth.
Total electric sales were recorded at 3,604.6 gigawatt-hours (GWh), up 4.6% from the prior-year quarter’s 3,446.3 GWh.
Financial Update
NiSource's cash and cash equivalents as of Dec 31, 2023 were $2.24 billion compared with $40.8 million as of Dec 31, 2022.
Long-term debts (excluding those due within a year) as of Dec 31, 2023 were $11.05 billion compared with $9.5 billion as of Dec 31, 2022.
Net cash flows from operating activities in 2023 were $1.93 billion compared with $1.41 billion in 2022.
Guidance
The company raised 2024 non-GAAP earnings to the band of $1.70-1.74 from the 1.68-1.72 band projected earlier. The Zacks Consensus Estimate is pegged at $1.71 per share, which is lower than the midpoint of the company’s guided range.
NI expects to witness an earnings CAGR of 6-8% through 2028. It also projects an investment of $16 billion during the 2024-2028 period.
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
At this time, NiSource has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.
Performance of an Industry Player
NiSource belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, FirstEnergy (FE - Free Report) , has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
FirstEnergy reported revenues of $3.15 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of $0.62 for the same period compares with $0.50 a year ago.
For the current quarter, FirstEnergy is expected to post earnings of $0.71 per share, indicating a change of +18.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +33.3% over the last 30 days.
FirstEnergy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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NiSource (NI) Up 4.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for NiSource (NI - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NiSource due for a pullback? 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 catalysts.
NiSource Q4 Earnings Beat Estimates, Revenues Lag
NiSource reported fourth-quarter 2023 operating earnings per share (EPS) of 53 cents, which surpassed the Zacks Consensus Estimate of 52 cents by 1.9%. The bottom line increased 6% from the year-ago quarter’s recorded figure of 50 cents. On a GAAP basis, the company reported an EPS of 50 cents compared with 52 cents in the prior-year quarter.
NI reported earnings of $1.60 for 2023 compared with $1.47 per share in 2022, which reflects a year-over-year increase of 8.8%.
Total Revenues
Operating revenues of $1.42 billion missed the Zacks Consensus Estimate of $1.58 billion by 10.3%. The top line also decreased 3.4% from the prior-year quarter’s figure of $1.7 billion.
NI reported total revenues of $5.5 billion for 2023 compared with $5.85 billion in 2022, which reflects a year-over-year decrease of 5.9%.
Highlights of the Release
Total operating expenses amounted to $1.06 billion, down 20.9% from the year-ago quarter’s level of $1.34 billion due to lower energy.
Operating income totaled $362.6 million, down 0.8% from the year-ago figure of $365.5 million.
Net interest expenses amounted to $141 million, up 38.5% from the prior-year quarter’s $101.8 million.
Total gas distribution in Sales and Transportation was recorded at 259.1 Million British Thermal Units per day (MMDth), down 3.6% from the prior-year quarter’s 268.7 MMDth.
Total electric sales were recorded at 3,604.6 gigawatt-hours (GWh), up 4.6% from the prior-year quarter’s 3,446.3 GWh.
Financial Update
NiSource's cash and cash equivalents as of Dec 31, 2023 were $2.24 billion compared with $40.8 million as of Dec 31, 2022.
Long-term debts (excluding those due within a year) as of Dec 31, 2023 were $11.05 billion compared with $9.5 billion as of Dec 31, 2022.
Net cash flows from operating activities in 2023 were $1.93 billion compared with $1.41 billion in 2022.
Guidance
The company raised 2024 non-GAAP earnings to the band of $1.70-1.74 from the 1.68-1.72 band projected earlier. The Zacks Consensus Estimate is pegged at $1.71 per share, which is lower than the midpoint of the company’s guided range.
NI expects to witness an earnings CAGR of 6-8% through 2028. It also projects an investment of $16 billion during the 2024-2028 period.
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
At this time, NiSource has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.
Performance of an Industry Player
NiSource belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, FirstEnergy (FE - Free Report) , has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
FirstEnergy reported revenues of $3.15 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of $0.62 for the same period compares with $0.50 a year ago.
For the current quarter, FirstEnergy is expected to post earnings of $0.71 per share, indicating a change of +18.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +33.3% over the last 30 days.
FirstEnergy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.