Advertisement
Canada markets closed

  • S&P/TSX

    22,308.93
    -66.90 (-0.30%)
     

  • S&P 500

    5,222.68
    +8.60 (+0.16%)
     

  • DOW

    39,512.84
    +125.08 (+0.32%)
     

  • CAD/USD

    0.7317
    +0.0006 (+0.08%)
     

  • CRUDE OIL

    78.20
    -1.06 (-1.34%)
     

  • Bitcoin CAD

    83,299.75
    -2,743.83 (-3.19%)
     

  • CMC Crypto 200

    1,261.15
    -96.86 (-7.13%)
     

  • GOLD FUTURES

    2,366.90
    +26.60 (+1.14%)
     

  • RUSSELL 2000

    2,059.78
    -13.85 (-0.67%)
     

  • 10-Yr Bond

    4.5040
    +0.0550 (+1.24%)
     

  • NASDAQ

    16,340.87
    -5.40 (-0.03%)
     

  • VOLATILITY

    12.55
    -0.14 (-1.10%)
     

  • FTSE

    8,433.76
    +52.41 (+0.63%)
     

  • NIKKEI 225

    38,229.11
    +155.13 (+0.41%)
     

  • CAD/EUR

    0.6789
    +0.0011 (+0.16%)
     
MARKETS LIVE BLOG:

STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

NiSource (NI) Misses on Q2 Earnings, Reaffirms Guidance - Analyst Blog

Zacks Equity Research
Updated

NiSource Inc. NI reported second-quarter 2015 operating earnings of 18 cents per share, missing the Zacks Consensus Estimate of 22 cents by 18.2%. Quarterly earnings also decreased from the year-ago figure of 25 cents.

The decline in earnings was primarily due to additional interest expense owing to Columbia Pipeline Group's (“CPG”) long-term debt issuance prior to its separation from NiSource along with the impact of non-controlling interest in Columbia Pipeline Partners formed in Feb 2015.

Before adjusting for non-recurring costs and accounting for discontinued operations, on a GAAP basis, the company incurred a loss of 11 cents per share compared with an income of 25 cents per share earned in the year-ago period.

Nisource Inc. - Earnings Surprise | FindTheBest

Revenues

In the second quarter, NiSource’s gross revenues of $1,175.8 million lagged the Zacks Consensus Estimate of $1,600 million by 26.5%. On a year-over-year basis, the reported top line decreased 11.9% primarily due to lower contribution from the Gas Distribution, Electric and Other segments. This was partially offset by higher revenues from the Gas Transportation and Storage segments.

Quarterly Operational Highlights

Sales from Electric operations declined 6.7% to 3,976.5 gigawatt hours. NiSource’s Gas Distribution sales decreased 7.5% to 183.1 million decatherm (MMDth).

Cost of sales plummeted 41.2% year over year to $218.6 million.

Total operating expenses came in at $799 million, up 5.8% year over year primarily due to higher operation and maintenance and depreciation and amortization expenses.

Interest expenses increased 7.3% year over year to $117.1 million due to CPG’s issuance of long-term debt in May 2015 as part of the recapitalization, the ending of interest rate swaps in Jul 2014, and the term loan agreed to in Aug 2014.

Columbia Pipeline Group Spin-off

On Jul 1, 2015, NiSource completed the spin-off of its pure-play natural gas pipeline, midstream and storage unit – CPG – through the distribution of CPG common stock to NiSource shareholders. Post completion, CPG is now an independent public company trading on the NYSE under the symbol CPGX. NiSource has no ownership interest in CPG or Columbia Pipeline Partners following the separation.

Financial Position

As of Jun 30, 2015, NiSource’s cash and cash equivalents increased significantly to $496.6 million from $25.4 million as of Dec 31, 2014.

Long-term debt (excluding amounts due within a year) as of Jun 30, 2015, was $8,881.1 million compared with $8,155.9 million as of Dec 31, 2014.

In the first half of 2015, net cash from operating activities came in at $1.115.7 million compared with $652.0 million in the year-ago period.

NiSource’s capital expenditure in the period was $991.1 million compared with $852.9 million in the year-ago period.

Guidance

NiSource maintained the 2015 earnings guidance in the range of $1.00 to $1.10 per share.

Other Peer Releases

PG&E Corporation’s PCG adjusted operating earnings per share of 91 cents in the second quarter of 2015 outpaced the Zacks Consensus Estimate of 77 cents by 18.2%. The reported figure also surged 31.9% from the year-ago earnings.

CMS Energy Corp. CMS reported second-quarter 2015 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 33 cents by 24.2%. Quarterly earnings also declined 16.7% from the year-ago figure primarily due to lower revenues.

American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.

Zacks Rank

NiSource currently has a Zacks Rank #5 (Strong Sell).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AMER ELEC PWR (AEP): Free Stock Analysis Report
 
CMS ENERGY (CMS): Free Stock Analysis Report
 
NISOURCE INC (NI): Free Stock Analysis Report
 
PG&E CORP (PCG): Free Stock Analysis Report
 
COLUMBIA PIPELN (CPGX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research