NiSource (NI) to Report Q2 Earnings: What’s in the Cards?

NiSource Inc. NI is scheduled to release second-quarter 2018 earnings results on Aug 1, before the opening bell. In the last reported quarter, the company’s earnings were in line with the consensus mark.

Let’s see how things are shaping up for this utility prior to the earnings announcement.

Factors to Consider

NiSource has a 100% regulated utility business model. The new gas rates approved at the beginning of 2018 and during the quarter are likely to have a positive impact on earnings. We expect that the company will gain from the modernization program which ensures continued timely recovery of 75% infrastructure investments in less than 12 months.

For the to-be-reported quarter, the Zacks Consensus Estimate for NiSource’s revenues is pegged at $999.3 million, reflecting a year-over-year increase of 0.88%.

Earnings Whispers

According to our proven model, a stock needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to beat estimates. However, NiSource does not have the correct combination for an earnings beat as elaborated below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company’s Earnings ESP is -8.11%.

Zacks Rank: NiSource carries a Zacks Rank #3. The company’s favorable Zacks Rank when combined with the negative ESP makes an earnings beat unlikely this season.

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

NiSource does not have the right combination but there are few other companies in the industry that are likely to beat estimates this earnings season.

Alliant Energy Corp. LNT is expected to release second-quarter results on Aug 2, 2018. It has an Earnings ESP of +1.10% and a Zacks Rank #2.

Algonquin Power & Utilities Corp. AQN is anticipated to release second-quarter results on Aug 9, 2018. It has an Earnings ESP of +15.38% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dominion Energy Inc. D is expected to release second-quarter results on Aug 1, 2018. It has an Earnings ESP of +0.84% and a Zacks Rank #2.

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