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CMS Energy (CMS) Q2 Earnings Beat Estimates, Revenues Fall Y/Y

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CMS Energy Corporation (CMS - Free Report) reported second-quarter 2023 adjusted earnings per share of 75 cents, which beat the Zacks Consensus Estimate of 69 cents by 8.7%. The reported figure also increased 41.5% on a year-over-year basis.

The company reported GAAP earnings of 67 cents per share compared with 50 cents in the second quarter of 2022.

Revenues

CMS Energy’s operating revenues totaled $1,555 million, which lagged the Zacks Consensus Estimate of $2,012 million by 22.7%. The top line also decreased 19% on a year-over-year basis.

 

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

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

Operational Performance

Total operating expenses were $1,311 million, down 22% from the year-ago quarter’s figure. Our model projected operating expenses of $1,703.5 million for the same period.

Net income for the quarter was $190 million, up 33.8% year over year. Our model projected net income of $185.8 million for the same period.

Interest charges were $160 million, up 27% from that recorded in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $389 million as of Jun 30, 2023, up from $164 million as of Dec 31, 2022.

As of Jun 30, 2023, total debt, financial leases and financing obligations (excluding securitization debt) were $14,966 million compared with $14,139 million as of Dec 31, 2022.

During the first six months of 2023, the company generated cash from operating activities worth $1,705 million compared with $1,059 million in the year-ago period.

2023 Guidance

CMS reaffirmed its 2023 adjusted earnings projection in the range of $3.06-$3.12 per share. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $3.10 per share, which is higher than the midpoint of the company’s guided range.

Zacks Rank

CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Eversource Energy (ES - Free Report) is slated to report second-quarter results on Jul 31, after market close. The Zacks Consensus Estimate for earnings is pegged at 91 cents per share, implying a year-over-year improvement of 5.8%.

ES’ long-term (three to five years) earnings growth rate is 6.30%. It delivered an average earnings surprise of 0.50% in the last four quarters.

NiSource (NI - Free Report) is slated to report second-quarter results on Aug 2, before market open. The Zacks Consensus Estimate for earnings is pegged at 13 cents per share, implying a year-over-year increase of 8.3%.

NI’s long-term earnings growth rate is 7%. It delivered an average earnings surprise of 0.51% in the last four quarters.

Ameren Corporation (AEE - Free Report) is scheduled to report second-quarter results on Aug 2, after market close. The Zacks Consensus
Estimate for earnings is pegged at 78 cents per share.

AEE’s long-term earnings growth rate is 6.40%. The company delivered an average earnings surprise of 4.70% in the last four quarters.

 


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