NiSource Q2 Earnings Forecast Amid Data Center Strategy Evaluation
Analysts project NiSource to report earnings of $0.20 per share on revenues of $1.25 billion for Q2, a 7.1% decline in earnings year-over-year despite a 7.8% revenue increase. The company's data center strategy, crucial for future growth, has led to 3.8 GW of signed capacity with clients like Amazon and Alphabet, with an investment plan of $28 billion through 2030.
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For the quarter ending June 30, NiSource is expected to post earnings of $0.20 per share and revenues of $1.25 billion, marking a 7.1% year-over-year decline in earnings while revenues rise 7.8%. Wall Street analysts maintain a buy recommendation on NiSource, with 13 out of 16 suggesting a price target of $51.17, a potential 15% increase from Monday's close of $44.53.
However, EPS estimates have dropped by 29.65% in the past 60 days due to rising operational costs, despite a 21% increase in revenue estimates linked to the expanding data center portfolio. The company has signed approximately 3.8 GW of capacity with hyperscale clients and has identified additional opportunities up to 5 GW.
Cost pressures, including labor and interest expenses, may impact Q2 results, although new tariffs may provide a $0.20 benefit. Investors will closely monitor the conversion of the 5 GW data center project portfolio into signed contracts.
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