NiSource (NI) Tops Q3 Earnings Estimates, Lags Revenues

Zacks

NiSource Inc. NI is an energy holding company. The Merrillville, IN-based firm is engaged in natural gas transmission, storage and distribution, and electric generation, transmission and distribution business.

NiSource’s stable cash generating capacity, steady focus on regulated utility operations and systematic investments in infrastructure modernization and expansion projects will likely boost its future performance. In addition, the company’s practice of paying dividend is commendable.

However, volatility in commodities prices and stringent environmental regulation remain potential setbacks.

Estimate Trend & Surprise History

Investors should note that the recent earnings estimate for NiSource of 2 cents has remained same over the past 90 days. The company currently has a Zacks Rank #3 (Hold).

Coming to the earnings surprise, NiSource has missed the Zacks Consensus Estimate in three of the last four quarters making for an average negative surprise of 7.24%.

Going further things could definitely change given the company’s recently released earnings results. Going below we have mentioned some of the vital information from this just-revealed announcement:

Earnings: NiSource surpassed third quarter 2015 earnings estimates. Our consensus called for third-quarter EPS of 2 cents, and the company reported EPS of 6 cents.

Revenue: NiSource missed on the revenue estimates. The company posted revenues of $821.1 million, compared to our third-quarter consensus estimate of $1,137 million.

Key Stats to Note: In the third quarter, NiSource’s Gas Distribution sales decreased 1% to 164.5 MMDth. The company’s sales from Electric Operations also declined 7.1% to 4,500.2 gigawatt hours.

Stock Price: It would be interesting to see how the market reacts to the positive earnings surprise during the trading session today.

Check back later for our full write up on this NI earnings report later!

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