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NiSource (NI) Q2 Earnings Meet Estimates, Revenues Miss

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NiSource Inc. (NI - Free Report) delivered operating earnings of 5 cents per share in second-quarter 2019, in line with the Zacks Consensus Estimate. The bottom line fell 28.6% from the year-ago quarter’s earnings of 7 cents. The company’s long-term utility infrastructure modernization programs, safety enhancements across gas distribution system, electric generation strategy in Indiana and restoration in the Merrimack Valley boosted quarterly results.

On a GAAP basis, the company reported earnings of 76 cents compared with 7 cents in the prior-year quarter.

Total Revenues

NiSource generated operating revenues of $1,011.9 million in the second quarter, which missed the Zacks Consensus Estimate of $1,063 million by 4.8%. Nevertheless, the top line inched up 1.6% from $995.1 million recorded in the year-ago quarter. Operating revenues in Gas Distribution and Electric Operations drove revenues year over year.

NiSource, Inc Price, Consensus and EPS Surprise

 

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 under review increased 9.6% year over year to $627 million.

Total interest expenses in the reported quarter increased 6% from the prior-year quarter’s figure to $94.1 million.

Financial Update

NiSource's cash and cash equivalents as of Jun 30, 2019, were $23.7 million compared with $112.8 million as of Dec 31, 2018.

Long-term debts (excluding amounts due within a year) as of Jun 30 were $7,109.7 million compared with $7,105.4 million as of Dec 31, 2018.

Net cash provided from operating activities in the first six months of 2019 was $926.2 million, up from $809.5 million in the first six months of 2018.

Guidance

For 2019, NiSource reaffirmed capital investment guidance in the range of $1.6-$1.7 billion. Management projects 2019 earnings per share (EPS) in the range of $1.27-$1.33. The mid-point of $1.30 is in line with the current Zacks Consensus Estimate.

NiSource expects its earnings and dividend to increase by 5-7% annually from 2019 through 2022. The company expects to make capital investments of $1.6-$2.0 billion annually through 2022.

Zacks Rank

NiSource has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

American Electric Power Co., Inc (AEP - Free Report) reported second-quarter 2019 adjusted EPS of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

CMS Energy Corporation (CMS - Free Report) reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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