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CMS Energy (CMS) to Report Q1 Earnings: What's in the Cards?

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CMS Energy Corporation (CMS - Free Report) is set to report first-quarter 2021 results on Apr 29, before market open. In the last reported quarter, the company delivered an earnings surprise of 1.82%.

In the trailing four quarters, CMS Energy came up with an earnings surprise of 8.91%, on average.

Factors to Consider

During most part of the January-March 2021 quarter, the company’s service territories experienced colder-than-normal temperature, accompanied by record snowfall. This must have pushed up electricity usage of the company’s customers for heating purpose, which in turn is  expected to have boosted its quarterly top-line performance.

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation price-eps-surprise | CMS Energy Corporation Quote

Notably, amid the pandemic, the company’s residential sales have remained elevated as most people have been working from home. A similar trend is expected to have boosted its first-quarter sales. On the other hand, as economic activities in the state of Michigan have been gradually recovering, we expect commercial and industrial segments’ sales to have improved in the first quarter.  So, overall, we remain optimistic about the company’s top-line growth in the soon-to-be-reported quarter.  

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.09 billion, indicating 12% improvement from the year-ago quarter’s reported figure.

During the first quarter, absence of any significant snow storm, otherwise prevalent in Michigan, must have contributed favorably to CMS Energy’s bottom-line performance. Moreover, driven by an accelerated reopening of the Michigan economy, some upside has been witnessed in residential and commercial margin. This in turn must have boosted the company’s quarterly earnings, which might have also benefited from its cost-management initiatives.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at $1.18, which indicates a 37.2% improvement from the figure reported in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for CMS Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here:

Earnings ESP: CMS Energy has an Earnings ESP of -1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #3.

Duke Energy Corp. (DUK - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank #3.

Xcel Energy Inc. (XEL - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3.

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