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CMS Energy is Set to Report Q3 Earnings: What's in the Cards?

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CMS Energy Corporation (CMS - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 31, before market open.
 
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

This utility company delivered an earnings surprise of 4.76% in the last reported quarter.

The company’s trailing four-quarter earnings surprise is 2%, on average. Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of CMS’ Results

CMS’ service territories experienced above-normal temperature patterns for the majority of the third quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this summer, which is expected to have contributed favorably to its quarterly revenues.
 

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise

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

However, some parts of its service areas witnessed severe rain and tornadoes in July, which are likely to have caused outages for some of CMS’ customers. This is likely to have adversely impacted the overall top-line performance to some extent.

CMS Energy's earnings are likely to have benefited from its ongoing cost savings initiatives and solid revenue growth expectations. However, the abovementioned severe weather conditions are likely to have caused damage to some of CMS’ infrastructure. This is expected to have pushed up its operating expenses for restoration and partially hurt its bottom-line performance. Nevertheless, favorable outcomes from its electric and gas rate cases are anticipated to have boosted the overall earnings figure.
 
During the third quarter, CMS had received approval from the Michigan Public Service Commission to expand its Renewable Energy Program, which offers all households and businesses the option to match 100% of their energy use with wind and solar power. We expect more updates on this matter once CMS Energy releases its third-quarter results.

CMS’ Q3 Expectation

The Zacks Consensus Estimate for CMS’ sales is pegged at $1.83 billion, which indicates year-over-year growth of 9.5%.

The consensus estimate for earnings is pegged at 78 cents per share, which indicates year-over-year growth of 27.9%.

What Our Model Predicts for CMS Energy

Our proven model does not 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 odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is -0.13%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

FirstEnergy (FE - Free Report) is scheduled to report its third-quarter results on Oct. 29, after market close. It has an Earnings ESP of +0.22% and a Zacks Rank of 3 at present. You can see the complete list of Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for sales is pegged at $3.98 billion, which indicates a 14.1% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 91 cents per share, which indicates year-over-year growth of 3.4%.

PG&E Corporation (PCG - Free Report) is scheduled to report its third-quarter results on Nov. 7, before market open. It has an Earnings ESP of +17.24% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $6.56 billion, which indicates a 11.4% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 29 cents per share, which indicates year-over-year growth of 20.8%.

Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to report its third-quarter results on Nov. 4, before market open. It has an Earnings ESP of +0.07% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for its sales is pegged at $2.51 billion, which indicates a 2.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 91 cents per share, which indicates year-over-year growth of 7.1%.

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