NiSource (NI) Up 7.6% Since Last Earnings Report: Can It Continue?

Company Overview - NiSource reported Q2 2024 operating earnings per share (EPS) of 21 cents, exceeding the Zacks Consensus Estimate of 15 cents by 40%, and showing a 90.9% increase from the previous year's 11 cents [2] - On a GAAP basis, the EPS was 19 cents compared to 9 cents in the prior-year quarter [2] Revenue and Expenses - Total operating revenues were $1.08 billion, missing the Zacks Consensus Estimate of $1.16 billion by 6.8%, and decreased by 0.9% from $1.09 billion in the prior-year quarter [3] - Total operating expenses were $847.7 million, down 8% from $921.1 million in the prior-year quarter, attributed to lower energy costs [4] - Operating income increased to $237 million, a 40.3% rise from $168.9 million in the previous year [4] Sales Performance - Total gas distribution in Sales and Transportation was 109.6 Million British Thermal Units per day (MMDth), down 5.1% from 115.5 MMDth in the prior-year quarter [5] - Total electric sales reached 4,018.6 gigawatt-hours (GWh), up 6.6% from 3,770.7 GWh in the prior-year quarter [5] Financial Position - Cash and cash equivalents as of June 30, 2024, were $0.101 billion, a significant decrease from $2.25 billion as of December 31, 2023 [6] - Long-term debts as of June 30, 2024, were $12.81 billion, up from $11.06 billion as of December 31, 2023 [6] - Net cash flows from operating activities in the first half of 2024 were $0.902 million, down from $1.19 billion in the same period last year [6] Guidance and Outlook - The company expects 2024 non-GAAP earnings in the range of $1.70-1.74 per share, with the Zacks Consensus Estimate at $1.72 per share [7] - NiSource anticipates an earnings CAGR of 6-8% through 2028 and capital expenditure of $16.4 billion for the 2024-2028 period [7] - Estimates for the stock have been trending upward, indicating a promising outlook [10] Industry Comparison - NiSource is part of the Zacks Utility - Electric Power industry, where IdaCorp reported revenues of $451.04 million, a year-over-year increase of 9%, and an EPS of $1.71 compared to $1.35 a year ago [11] - IdaCorp is expected to post earnings of $2.16 per share for the current quarter, reflecting a 4.4% increase from the prior-year quarter [12]