NiSource Inc. NI is scheduled to report second-quarter 2015 results before the opening bell on Aug 3, 2015. Last quarter, the company posted a positive earnings surprise of 3.66%. Let’s see how things are shaping up for the second quarter.
Factors to Note
NiSource’s assets are loacted in an energy-intensive region extending from the Gulf Coast to the Midwest, Mid-Atlantic, New England and Northeast. This corridor comprises over 30% of the country’s population and nearly 31% of its natural gas consumption.
However, the company’s natural gas operation in the second quarter could be adversely impacted by the fall in prices.
Earnings Whispers?
Our proven model does not conclusively show that NiSource will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 22 cents.
Zacks Rank: NiSource’s Zacks Rank #5 when combined with a 0.00% ESP makes an earnings beat highly unlikely.
As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the utility sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Entergy Corporation ETR has an earnings ESP of +1.77% and carries a Zacks Rank #3.
Consolidated Edison, Inc. ED has an earnings ESP of +1.56% and carries a Zacks Rank #3.
NRG Energy Inc. NRG has an earnings ESP of +40.00% and carries a Zacks Rank #3.
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