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CMS Energy Q3 Earnings Beat Estimates, Revenues Improve Y/Y

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CMS Energy Corporation (CMS - Free Report) reported third-quarter 2024 earnings per share (EPS) of 84 cents, which beat the Zacks Consensus Estimate of 78 cents by 7.7%. The bottom line also improved 40% from 60 cents in the prior-year quarter. 

The year-over-year improvement can be attributed to higher revenues and operating income.

Revenues

Operating revenues totaled $1.74 billion, which lagged the Zacks Consensus Estimate of $1.83 billion by 4.9%. The top line, however, increased 4.2% on a year-over-year basis.

Operational Performance

CMS’ operating expenses amounted to $1.38 billion, down 1.9% from the year-ago quarter’s figure.

Net income for the quarter was $253 million, which came in higher than the year-ago quarter’s figure of $176 million. Our model projected a net income of $232 million for the third quarter.

Interest charges totaled $178 million, up 8.5% from that recorded a year ago.

Financial Condition

CMS Energy had cash and cash equivalents of $412 million as of Sept. 30, 2024, compared with $227 million as of Dec. 31, 2023.

As of Sept. 30, 2024, total debt and financial leases (excluding securitization debt) were $15.45 billion compared with $14.86 billion as of Dec. 31, 2023.

In the first nine months of 2024, the company generated cash from operating activities worth $1.97 billion compared with $1.90 billion in the prior-year period.

2024 Guidance

CMS reiterated its 2024 bottom-line guidance. The company continues to expect to generate adjusted EPS in the range of $3.29-$3.35. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $3.33 per share, which lies just above the mid-point of the company’s guided range.

The company introduced its adjusted earnings guidance for 2025. It expects to generate earnings per share in the range of $3.52-$3.58 next year. The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.60 per share, which lies above the company’s guided range.

Zacks Rank

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

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Edison International (EIX - Free Report) reported third-quarter 2024 adjusted earnings of $1.51 per share, which surpassed the Zacks Consensus Estimate of $1.39 by 8.6%. The bottom line also increased 9.4% from $1.38 in the year-ago quarter.

Operating revenues totaled $5.20 billion, which beat the Zacks Consensus Estimate of $4.76 billion by 9.4%. The top line also increased 10.6% from the year-ago figure of $4.70 billion.

CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2024 adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 13.9%. The bottom line also deteriorated 22.5% year over year.

CNP generated revenues of $1.86 billion, which missed the Zacks Consensus Estimate of $1.88 billion by 1.2%. The top line also came in 0.2% lower than the year-ago reported figure.

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2024 adjusted earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 98 cents by 5.1%. The bottom line also improved nearly 12.8% year over year.  

Operating revenues totaled $7.56 billion, which lagged the Zacks Consensus Estimate of $8.45 billion by 10.5%. The top line improved 5.5% year over year.


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