) is slated to release its second quarter 2013 earnings results
before the market bell on Jul 31. Last quarter, the company
reported a negative earnings surprise of 1.43%. Let's see how
things are shaping up for the utility operator for this
Factors to Consider This Quarter
NiSource's pipeline operations are expected to benefit from
the current shale boom in the U.S. Moreover, the Minisink
Compressor project, part of its Millennium Pipeline program, has
already come into service during the second quarter which will
spur the company's profitability.
Furthermore, an initial commencement of services at the West
Side Expansion venture will act as a tailwind for NiSource.
However, tepid macroeconomic conditions in the U.S. are still
affecting electricity prices which might offset the company's
Our proven model does not conclusively show that NiSource is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive earnings Expected Surprise
Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
The Most Accurate estimate stands at 23 cents while the
Zacks Consensus Estimate is higher at 24 cents. This comes to a
difference of -4.17%.
Zacks Rank #2 (Buy):
NiSource has a Zacks Rank #2 (Buy). This combined with an ESP of
-4.17% makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions.
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
), Earnings ESP of +17.65% and a Zacks Rank #2 (Buy).
Pinnacle West Capital Corp.
), Earnings ESP of +3.64% and a Zacks Rank #3 (Hold).
Black Hills Corp.
), Earnings ESP of +2.38% and a Zacks Rank #3 (Hold).
BLACK HILLS COR (BKH): Free Stock Analysis
IDACORP INC (IDA): Free Stock Analysis Report
NISOURCE INC (NI): Free Stock Analysis Report
PINNACLE WEST (PNW): Free Stock Analysis
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