NiSource Misses on Both Revenue and Earnings

Seth Jayson, The Motley Fool
Updated

NiSource (NYS: NI) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NiSource missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
NiSource tallied revenue of $1.45 billion. The two analysts polled by S&P Capital IQ anticipated a top line of $1.51 billion. Sales were 15% lower than the prior-year quarter's $1.67 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.31. The seven earnings estimates compiled by S&P Capital IQ predicted $0.35 per share on the same basis. GAAP EPS of $0.05 for Q4 were 55% lower than the prior-year quarter's $0.11 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.2%, 270 basis points worse than the prior-year quarter. Operating margin was 13.1%, 130 basis points worse than the prior-year quarter. Net margin was 1.0%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.67 billion. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $6.18 billion. The average EPS estimate is $1.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 173 rating the stock outperform, and 26 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give NiSource a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NiSource is hold, with an average price target of $23.

Can your portfolio provide you with enough income to last through retirement? You'll need more than NiSource. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement