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NiSource (NI) to Post Q2 Earnings: What's in the Cards?

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NiSource Inc. (NI - Free Report) is scheduled to release second-quarter 2019 results on Jul 31, before the opening bell. In the trailing four quarters, the company delivered an average positive earnings surprise of 13.41%.

Let’s see how things are shaping up prior to the upcoming results.

Here's What Could Drive Results

NiSource continues to invest in infrastructure improvement and aims to spend $1.6-$1.7 billion in 2019. Since the company recovers 75% of infrastructure investments in less than 12 months, it is expected that expenditures made in the past year will yield returns in the to-be-reported quarter.

The company continues to progress with its electric generation strategy in Indiana. It received approval for Columbia Gas of Ohio IRP Annual Rider Update and Columbia Gas of Massachusetts Gas System Enhancement Plan in the quarter to be reported. The new rates are effective from May 2019 and expected to make positive impact on second-quarter results.

However, expenses related to the Greater Lawrence restoration are likely to exert pressure on the upcoming quarterly results. OnSeptember 2018, excessive pressure on natural gas lines caused a series of explosions and fires that damaged nearly 40 homes in the Merrimack Valley towns of Lawrence, MA. Since the damage resulted from pipelines owned by one of NI Source's subsidiaries, the company had to take responsibility and incur expenditures for recovery.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter 2019 sales is pegged at $1.06 billion, indicating a rise of 5.57% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 5 cents, which suggests a decline of 28.57% year over year.

NiSource, Inc Price and EPS Surprise

 

NiSource, Inc Price and EPS Surprise

NiSource, Inc price-eps-surprise | NiSource, Inc Quote

 

Earnings Whispers

Our proven model does not show that NiSource is likely to beat earnings estimates in the quarter to be reported. For this to happen, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: NiSource currently carries a Zacks Rank #3.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Investors can also consider stocks from the same industry, which have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corp (ETR - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results on Jul 31.

Black Hills Corporation (BKH - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is likely to report second-quarter 2019 results on Aug 5.

The Southern Company (SO - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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