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NiSource (NI) Up 7.6% 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 7.6% 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 drivers.
NiSource Q2 Earnings Surpass Estimates, Revenues Lag
NiSource reported second-quarter 2024 operating earnings per share (EPS) of 21 cents, which surpassed the Zacks Consensus Estimate of 15 cents by 40%. The bottom line increased 90.9% from the year-ago quarter’s recorded figure of 11 cents.
On a GAAP basis, the company reported an EPS of 19 cents compared with 9 cents in the prior-year quarter.
Total Revenues
Operating revenues of $1.08 billion missed the Zacks Consensus Estimate of $1.16 billion by 6.8%. The top line also decreased 0.9% from the prior-year quarter’s figure of $1.09 billion.
Highlights of the Release
Total operating expenses amounted to $847.7 million, down 8% from the year-ago quarter’s level of $921.1 million due to low cost of energy.
Operating income totaled $237 million, up 40.3% from the year-ago figure of $168.9 million.
Net interest expenses amounted to $129.3 million, up 17.1% from the prior-year quarter’s $110.5 million.
Total gas distribution in Sales and Transportation was recorded at 109.6 Million British Thermal Units per day (MMDth), down 5.1% from the prior-year quarter’s 115.5 MMDth. Total electric sales were recorded at 4,018.6 gigawatt-hours (GWh), up 6.6% from the prior-year quarter’s 3,770.7 GWh.
Financial Update
NiSource's cash and cash equivalents as of Jun 30, 2024, were $0.101 billion compared with $2.25 billion as of Dec 31, 2023.
Long-term debts (excluding those due within a year) as of Jun 30, 2024, were $12.81 billion compared with $11.06 billion as of Dec 31, 2023.
Net cash flows from operating activities in the first six months of 2024 were $0.902 million compared with $1.19 billion in the year-ago period.
Guidance
The company continues to expect 2024 non-GAAP earnings in the band of $1.70-1.74 per share. The Zacks Consensus Estimate is pegged at $1.72 per share, in line with the midpoint of the company’s guided range.
NI expects to witness an earnings CAGR of 6-8% through 2028. It also continues to expect capital expenditure of $16.4 billion for the 2024-2028 period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, NiSource has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise 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, IdaCorp (IDA - Free Report) , has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
IdaCorp reported revenues of $451.04 million in the last reported quarter, representing a year-over-year change of +9%. EPS of $1.71 for the same period compares with $1.35 a year ago.
For the current quarter, IdaCorp is expected to post earnings of $2.16 per share, indicating a change of +4.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
IdaCorp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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NiSource (NI) Up 7.6% 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 7.6% 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 drivers.
NiSource Q2 Earnings Surpass Estimates, Revenues Lag
NiSource reported second-quarter 2024 operating earnings per share (EPS) of 21 cents, which surpassed the Zacks Consensus Estimate of 15 cents by 40%. The bottom line increased 90.9% from the year-ago quarter’s recorded figure of 11 cents.
On a GAAP basis, the company reported an EPS of 19 cents compared with 9 cents in the prior-year quarter.
Total Revenues
Operating revenues of $1.08 billion missed the Zacks Consensus Estimate of $1.16 billion by 6.8%. The top line also decreased 0.9% from the prior-year quarter’s figure of $1.09 billion.
Highlights of the Release
Total operating expenses amounted to $847.7 million, down 8% from the year-ago quarter’s level of $921.1 million due to low cost of energy.
Operating income totaled $237 million, up 40.3% from the year-ago figure of $168.9 million.
Net interest expenses amounted to $129.3 million, up 17.1% from the prior-year quarter’s $110.5 million.
Total gas distribution in Sales and Transportation was recorded at 109.6 Million British Thermal Units per day (MMDth), down 5.1% from the prior-year quarter’s 115.5 MMDth.
Total electric sales were recorded at 4,018.6 gigawatt-hours (GWh), up 6.6% from the prior-year quarter’s 3,770.7 GWh.
Financial Update
NiSource's cash and cash equivalents as of Jun 30, 2024, were $0.101 billion compared with $2.25 billion as of Dec 31, 2023.
Long-term debts (excluding those due within a year) as of Jun 30, 2024, were $12.81 billion compared with $11.06 billion as of Dec 31, 2023.
Net cash flows from operating activities in the first six months of 2024 were $0.902 million compared with $1.19 billion in the year-ago period.
Guidance
The company continues to expect 2024 non-GAAP earnings in the band of $1.70-1.74 per share. The Zacks Consensus Estimate is pegged at $1.72 per share, in line with the midpoint of the company’s guided range.
NI expects to witness an earnings CAGR of 6-8% through 2028. It also continues to expect capital expenditure of $16.4 billion for the 2024-2028 period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, NiSource has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise 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, IdaCorp (IDA - Free Report) , has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
IdaCorp reported revenues of $451.04 million in the last reported quarter, representing a year-over-year change of +9%. EPS of $1.71 for the same period compares with $1.35 a year ago.
For the current quarter, IdaCorp is expected to post earnings of $2.16 per share, indicating a change of +4.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
IdaCorp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.