NiSource reported fourth-quarter 2023 operating earnings per share (EPS) of 53 cents, exceeding the Zacks Consensus Estimate of 52 cents by 1.9%. The bottom line marked a 6% increase from the year-ago quarter’s figure of 50 cents. On a GAAP basis, the company reported an EPS of 50 cents compared with 52 cents in the prior-year quarter.
In 2023, NiSource reported earnings of $1.60 per share, compared with $1.47 per share in 2022, reflecting an 8.8% year-over-year increase.
Revenues Fall Short
Operating revenues of $1.42 billion missed the Zacks Consensus Estimate of $1.58 billion by 10.3%. The top line also decreased 3.4% from the prior-year quarter’s figure of $1.7 billion.
For the full year of 2023, NiSource reported total revenues of $5.5 billion, a decrease from $5.85 billion in 2022, which reflects a year-over-year decrease of 5.9%.
Key Highlights of the Release
Total operating expenses amounted to $1.06 billion, down 20.9% from the year-ago quarter, primarily due to lower energy costs. Operating income totaled $362.6 million, down 0.8% from the year-ago figure of $365.5 million. Net interest expenses amounted to $141 million, indicating an increase of 38.5% from the prior-year quarter’s $101.8 million. Additionally, total gas distribution in Sales and Transportation was recorded at 259.1 Million British Thermal Units per day (MMDth), down 3.6% from the prior-year quarter’s 268.7 MMDth. On the other hand, total electric sales were recorded at 3,604.6 gigawatt-hours (GWh), marking a 4.6% increase from the prior-year quarter’s 3,446.3 GWh.
Financial Update
NiSource’s cash and cash equivalents as of Dec 31, 2023 were $2.24 billion, a significant increase from $40.8 million as of Dec 31, 2022. Long-term debts (excluding those due within a year) as of Dec 31, 2023 were $11.05 billion compared with $9.5 billion as of Dec 31, 2022. Net cash flows from operating activities in 2023 were $1.93 billion compared with $1.41 billion in 2022.
Guidance and Ranking Update
The company raised its 2024 non-GAAP earnings to the band of $1.70-1.74 from the 1.68-1.72 band projected earlier. NiSource currently carries a Zacks Rank #2 (Buy). The company also expects to witness an earnings CAGR of 6-8% through 2028 and plans to invest $16 billion during the 2024-2028 period.
Upcoming Releases and Expert Analysis
Looking ahead, other companies like Pinnacle West (PNW), NRG Energy (NRG), and Vistra Energy Corp. (VST) are set to report their fourth-quarter 2023 results. While Pinnacle West is expected to show a year-over-year increase, NRG Energy and Vistra Energy Corp. are expected to undergo year-over-year declines based on the Zacks Consensus Estimates. The release presents investors with opportunities for further market analysis and potential investment prospects. Additionally, Zacks experts have identified 5 stocks with the potential to double in 2023.
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