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CMS Energy (CMS) Q4 Earnings Meets Estimates, Hikes '18 View

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CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2017 adjusted earnings per share of 51 cents which was in line with the Zacks Consensus Estimate of 51 cents. Quarterly earnings however surged 75.9% from the year-ago figure of 29 cents.

Excluding the one-time tax reform’s impact of 52 cents, the company reported loss of a penny as against earnings of 28 cents per share in the year-ago quarter.

For 2017, CMS Energy’s adjusted earnings were $2.17 per share, up from $2.03 from the year-ago period. The full-year adjusted earnings also came in line with the Zacks Consensus Estimate.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues came in at $1,778 million, which surpassed the Zacks Consensus Estimate of $1,676 million by 6.1%. Moreover, on a year-over-year basis, revenues surged 8.4% from $1,640 million in the year-ago period.

For 2017, the company generated revenues worth $6.58 billion, which also surpassed the Zacks Consensus Estimate of $6.56 billion. Moreover, on a year-over-year basis, revenues surged 2.9% from $6.40 billion in the year-ago period.

The company’s operating expenses rose 2.9% year-over-year to $1,399 million during the quarter.

Operating income during the fourth quarter was $379 million, up 35.4% from $280 million a year ago.

CMS Energy’s interest charges were $110 million, compared with $111 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $182 million as of Dec 31, 2017, down from $235 million as of Dec 31, 2016.

As of Dec 31, 2017, total debt, capital leases and financing obligations was $10,185 million, up from $9,706 million as of Dec 31, 2016.

At the end of 2017, cash from operating activities was $1,705 million compared with $1,629 million in the year-ago period.

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation Price, Consensus and EPS Surprise | CMS Energy Corporation Quote

Guidance

CMS Energy raised its guidance for 2018 adjusted earnings to $2.30-$2.34 per share, from the earlier range of $2.29-$2.33, reflecting 6-8% annual adjusted earnings per share growth.

Zacks Rank & Key Pick

CMS Energy carries a Zacks Rank #4 (Sell).

A better-ranked stock in the same space is CenterPoint Energy (CNP - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CenterPoint Energy surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with an average positive earnings surprise of 6.42%. The company has a solid long-term earnings growth of 6%.

Recent Peer Releases

NextEra Energy (NEE - Free Report) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy (D - Free Report) reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

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