NiSource Q2 Earnings Surpass Estimates, Revenues Miss

NiSource NI reported second-quarter 2024 operating earnings per share of 21 cents, which surpassed the Zacks Consensus Estimate of 15 cents by 40%. The bottom line increased 90.9% from the year-ago quarter's recorded figure of 11 cents.

On a GAAP basis, the company reported an EPS of 19 cents compared with 9 cents in the prior-year quarter.

Total Revenues

Operating revenues of $1.08 billion missed the Zacks Consensus Estimate of $1.16 billion by 6.8%. The top line also decreased 0.9% from the prior-year quarter's figure of $1.09 billion.

Highlights of the Release

Total operating expenses amounted to $847.7 million, down 8% from the year-ago quarter's level of $921.1 million due to low cost of energy.

Operating income totaled $237 million, up 40.3% from the year-ago figure of $168.9 million.

Net interest expenses amounted to $129.3 million, up 17.1% from the prior-year quarter's $110.5 million.

Total gas distribution in Sales and Transportation was recorded at 109.6 Million British Thermal Units per day (MMDth), down 5.1% from the prior-year quarter's 115.5 MMDth.

Total electric sales were recorded at 4,018.6 gigawatt-hours (GWh), up 6.6% from the prior-year quarter's 3,770.7 GWh.

Financial Update

NiSource's cash and cash equivalents as of Jun 30, 2024, were $0.101 billion compared with $2.25 billion as of Dec 31, 2023.

Long-term debts (excluding those due within a year) as of Jun 30, 2024, were $12.81 billion compared with $11.06 billion as of Dec 31, 2023.

Net cash flows from operating activities in the first six months of 2024 were $0.902 million compared with $1.19 billion in the year-ago period.

Guidance

The company continues to expect 2024 non-GAAP earnings in the band of $1.70-1.74 per share. The Zacks Consensus Estimate is pegged at $1.72 per share, in line with the midpoint of the company's guided range.

NI expects to witness an earnings CAGR of 6-8% through 2028. It also continues to expect capital expenditure of $16.4 billion for the 2024-2028 period.

Zacks Rank

NiSource currently carries a Zacks Rank #2 (Buy).

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