NiSource Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NiSource (NYSE:NI) will unveil its latest earnings on Tuesday, October 30, 2012. NiSource is an energy holding company that provides natural gas, electricity, and other products and services to customers in the U.S.

NiSource Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 9 cents per share, a decline of 18.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 16 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 12 cents during the last month. Analysts are projecting profit to rise by 9.9% versus last year to $1.44.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 22 cents per share, and the previous quarter, it had profit of 73 cents.

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A Look Back: In the second quarter, profit rose 78.4% to $69.4 million (23 cents a share) from $38.9 million (14 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 14.6% to $1.05 billion from $1.23 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.66 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had risen 73 cents (3%), from $24.43 to $25.16. The stock price saw one of its best stretches over the last year between June 1, 2012 and June 8, 2012, when shares rose for six straight days, increasing 2.1% (+53 cents) over that span. It saw one of its worst periods between December 29, 2011 and January 11, 2012 when shares fell for nine straight days, dropping 5.9% (-$1.41) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 6.1% in the third quarter of the last fiscal year, 15.1% in fourth quarter of the last fiscal year and 25.7% in the first quarter and then fell again in the second quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.

Analyst Ratings: There are mostly holds on the stock with six of seven analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2% in revenue from the year-earlier quarter to $1.04 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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