NiSource (NI) To Post Q1 Earnings: What's In The Cards?

NiSource Inc. (NYSE:NI) is scheduled to release first-quarter 2019 results on May 1, before the opening bell. In the trailing four quarters, the company delivered an average positive earnings surprise of 11.79%.

Let’s see how things are shaping up prior to the upcoming results.

Here's What Could Drive Results

The recently implemented rate cases will have a positive impact on the first-quarter results as the company is 100% regulated. In Pennsylvania, the company received regulatory approval of base rate case settlement, with the new rates coming into effect from December 2018. This settlement is expected to increase annual revenues by $26 million, which in turn will impact the to-be-reported quarter’s results.

NiSource continues to invest in infrastructure modernization plan, which will help it to cater to its rising natural gas customer base. Since, the company recovers 75% of infrastructure investments in less than 12 months, it is expected that investment made in past year will yield returns and boost the to-be-reported quarter's results.

However, the company expects earnings growth of 2019 to be impacted by expenses related to the Greater Lawrence restoration. This will have a bearing on the to-be-reported quarter’s results as well.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2019 revenues is pegged at $1.84 billion, indicating an improvement of 5.15% from the year-ago quarter. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 77 cents.

Earnings Whispers

Our proven model does not show that NiSource is likely to beat earnings this quarter as it does not possess the key components. For a beat, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has Earnings ESP of +0.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: NiSource currently carries a Zacks Rank #4.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Investors can consider the other stocks from the same sector which have the right combination of elements, to post an earnings beat in the to-be-reported quarter.

ONE Gas, Inc (NYSE:OGS) has an Earnings ESP of +0.92% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on Apr 29.

Pinnacle West Capital Corporation (NYSE:PNW) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on May 1.

Exelon Corporation (NYSE:EXC) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on May 2.

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