NiSource (NI) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
NiSource Inc. NI reported third-quarter 2023 operating earnings per share (EPS) of 19 cents, which surpassed the Zacks Consensus Estimate of 14 cents by 35.7%. The bottom line increased 90% from the year-ago quarter’s recorded figure of 12 cents.
On a GAAP basis, the company reported EPS of 17 cents compared with 12 cents in the prior-year quarter.
Total Revenues
Operating revenues of $1,027.4 million missed the Zacks Consensus Estimate of $1,057 million by 2.8%. The top line also decreased 5.7% from the prior-year quarter’s figure of $1,089.5 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 amounted to $794.4 million, down 14.8% from the year-ago quarter’s level of $932.8 million due to lower energy and operation and maintenance (O&M) costs. Our model predicted total operating expenses of $841.8 million for the quarter.
Operating income totaled $233 million, up 48.7% from the year-ago figure of $156.7 million.
Net interest expenses amounted to $129.2 million, up 41% from the prior-year quarter’s $91.6 million.
Total gas distribution in Sales and Transportation was recorded at 163.5 Million British Thermal Units per day (MMDth) while our model predicted 168 MMDth.
Total electric sales were recorded at 4,087.1 gigawatt-hour (GWh) while our model projected 4,222 GWh.
Financial Update
NiSource's cash and cash equivalents as of Sep 30, 2023, were $56 million compared with $40.8 million as of Dec 31, 2022. The company had $1 billion in net available liquidity as of Sep 30, 2023.
Long-term debts (excluding those due within a year) as of Sep 30, 2023, were $11,011.3 million compared with $9,523.6 million as of Dec 31, 2022.
Net cash flows from operating activities in the first nine months of 2023 were $1,535.9 million compared with $1,036.2 million in the year-ago period.
Guidance
NiSource reaffirmed its 2023 non-GAAP net operating earnings (NOE) guidance in the range of $1.54-$1.60 per share. It now expects earnings to be toward the upper half of the range. The Zacks Consensus Estimate for the same is pegged at $1.58 per share, which is higher than the midpoint of the company’s projection.
The company expects 2024 non-GAPP NOE in the band of $1.68-1.72. The Zacks Consensus Estimate is pegged at $1.69 per share, which is a tad 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 in the range of $15.2-$16.6 billion during 2024-2028.
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
Exelon Corp. EXC is slated to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.
EXC’s long-term (three to five years) earnings growth rate is 6.3%. The consensus estimate for 2023 EPS is pegged at $2.35, indicating a year-over-year improvement of 3.5%.
Ameren Corp. AEE is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.80 per share.
AEE’s long-term earnings growth rate is 6.6%. The consensus estimate for 2023 EPS is pegged at $4.37, indicating a year-over-year improvement of 5.6%.
ALLETE Inc. ALE is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pinned at 61 cents per share.
ALE’s long-term earnings growth rate is 8.1%. The consensus estimate for 2023 EPS is pegged at $3.67, indicating a year-over-year improvement of 8.6%.
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