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Is a Beat in Store for NiSource (NI) This Earnings Season?

We expect NiSource NI to beat expectations when it reports second-quarter 2017 results on Aug 2, before market opens. Last quarter, NiSource’s earnings were in line with the Zacks Consensus Estimate.

Why a Likely Positive Surprise?

Our proven model shows that NiSource is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 11 cents and the Zacks Consensus Estimate of 10 cents, is +10.00%. This is a key indicator of a likely positive surprise. 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 #2. The combination of NiSource’s favorable Zacks Rank and positive ESP makes us confident of a positive surprise this season.

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

NiSource, Inc Price and EPS Surprise

NiSource, Inc Price and EPS Surprise | NiSource, Inc Quote


Factors to Consider

NiSource is expected to gain from the regulatory initiatives including gas base rate case settlement approvals in Kentucky, Maryland and Pennsylvania, much like first-quarter 2017. The rate settlement in Virginia will also boost the top line of the company.

There are signs of economic prominent improvement across NiSource’s service territories, which are expanding its customer base. The optimism in the market continues to drive the company’s sales and is likely to boost top line in the second quarter.

Other Stocks to Consider

NiSource is not the only company in the industry looking up this earnings season. We can expect earnings beats from these companies as well.

Allete, Inc. ALE has an Earnings ESP of +5.36% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pattern Energy Group Inc. PEGI has an Earnings ESP of +23.08% and carries a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 4.

The AES Corporation AES has an Earnings ESP of +20.00% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 8.

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NiSource, Inc (NI): Free Stock Analysis Report
 
The AES Corporation (AES): Free Stock Analysis Report
 
Allete, Inc. (ALE): Free Stock Analysis Report
 
Pattern Energy Group Inc. (PEGI): Free Stock Analysis Report
 
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