NiSource Inc. Poised for Q3 Earnings Report: Market Analysts Weigh In
NiSource Inc. (NI), with a market cap of $15.7 billion, delivers regulated natural gas and electricity services. The company operates around 55,000 miles of gas distribution pipelines and about 1,000 miles of transmission pipelines. Additionally, NiSource generates electricity from diverse sources such as coal, natural gas, hydro, wind, and solar in Indiana. Investors are eagerly anticipating the company’s Q3 earnings announcement scheduled for Wednesday, Oct. 30, before market hours.
Analysts Forecast a Decline in Earnings Per Share
Before the earnings report, analysts predict NiSource will report a profit of $0.15 per share, reflecting a 21.1% decrease from the $0.19 per share recorded in the same quarter last year. Despite this expected drop, the company has consistently outperformed Wall Street’s earnings per share (EPS) projections over the past four quarters, surpassing consensus estimates by 40% in the last quarter.
Expectations for Fiscal Year 2024 Are Positive
Looking ahead, analysts anticipate that in fiscal 2024, NiSource will report an EPS of $1.72, which marks a 7.5% increase from $1.60 in fiscal 2023.
Stock Performance Shows Strong Gains
This year, NI stock has risen 31.6%, outpacing the S&P 500 Index’s ($SPX) 22.7% gains and the Utilities Select Sector SPDR Fund’s (XLU) 27.9% return during the same period.
Recent Financial Performance Boosts Investor Confidence
On Aug. 7, shares of NiSource rose marginally after the company disclosed Q2 adjusted EPS of $0.21, which exceeded expectations. A reduction in total operating expenses by 8% year-over-year to $847.7 million, largely due to lower energy costs, also generated positive sentiment among investors. Furthermore, operating income saw a substantial increase of 40.3%, reaching $237 million. NiSource reaffirmed its non-GAAP earnings guidance for 2024 at $1.70 to $1.74 per share, bolstering confidence in its financial prospects.
Analyst Ratings and Market Perception
The consensus view on NiSource stock remains optimistic, with 13 analysts now recommending a “Strong Buy” rating. This is an increase from three months ago, when only 11 analysts shared this outlook. Currently, NI trades below the average analyst price target of $35.96.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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