NiSource Inc. Reports Strong Growth Amid Positive Market Performance
With a market cap of $17.7 billion, NiSource Inc. (NI) is a prominent regulated utility firm offering natural gas (NGH25) and electric services to millions in the Midwest and Northeast United States. Headquartered in Merrillville, Indiana, NiSource emphasizes safe, reliable, and sustainable energy solutions. The company is dedicated to modernizing infrastructure and promoting clean energy initiatives for long-term growth.
Stock Performance: Outpacing the Market
Over the past year, shares of NiSource have significantly outperformed the broader market. NI has increased 51.2%, while the S&P 500 Index ($SPX) has seen a growth of 20.6%. In 2025, NI has shown a modest increase of 3.2%, surpassing SPX’s 2.5% gain on a year-to-date basis.
A Closer Look: Strong Returns Compared to Peers
NiSource has also outpaced the Utilities Select Sector SPDR Fund’s (XLU) 29.2% return over the same period.
Q3 Earnings Report: A Positive Update
The company’s shares climbed 2.1% on Oct. 30 following its Q3 earnings report. Revenue rose 3.8% year over year to $1.08 billion. Adjusted EPS of $0.20 exceeded projections, marking a 5.3% annual increase. NiSource has reaffirmed its guidance for 2024 non-GAAP adjusted EPS of $1.70 to $1.74 and projected EPS for 2025 to be between $1.84 and $1.88. For the long term, NiSource expects 6% to 8% annual EPS growth, supported by $19.3 billion in capital expenditures and an 8% to 10% increase in the rate base. Notably, the updated five-year capital plan is $2.9 billion higher than previously planned.
Upcoming Earnings and Analysts’ Ratings
NiSource is scheduled to report its fiscal Q4 earnings on Wednesday, Feb. 12, before the market opens. Analysts forecast an 8.1% year-over-year growth in EPS for fiscal 2024, which ends in December, reaching $1.73. The company has consistently surpassed earnings expectations, having beat consensus estimates for the past four quarters.
All 14 analysts covering NI have given the stock a “Strong Buy” rating.
Future Price Targets and Market Insights
On Jan. 23, Guggenheim increased NI’s price target to $42 from $38, maintaining its “Buy” rating amid a broader review of the utility sector. The average price target stands at $39.88, indicating a modest premium of 5.1% over current levels. Additionally, the highest price target of $43 suggests a potential increase of 13.4% based on current prices.
On the date of publication, Rashmi Kumari did not hold any positions, directly or indirectly, in the securities mentioned in this article. All information is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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