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CMS Energy (CMS) Beats on Q3 Earnings, Issues '18 Outlook

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CMS Energy Corporation (CMS - Free Report) reported third-quarter 2017 adjusted earnings per share of 62 cents, considering restructuring cost as one-time item. The figure surpassed the Zacks Consensus Estimate of 55 cents by 12.7%. Quarterly earnings however dropped 11.4% from the year-ago figure of 70 cents.

Excluding the one-time item, CMS Energy reported earnings of 61 cents per share, which dropped 9% year over year.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues came in at $1,527 million, which missed the Zacks Consensus Estimate of $1,530 million by a mere 0.2%. Moreover, on a year-over-year basis, revenues dropped 3.8% from $1,587 million.

CMS Energy Corporation Price, Consensus and EPS Surprise

 

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

The company’s operating expenses dropped 1.3% to $1,197 million during the quarter.

Operating income during the third quarter was $330 million, down 1.2% from $375 million a year ago.

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

Financial Condition

CMS Energy had cash and cash equivalents of $142 million as of Sep 30, 2017, down from $235 million as of Dec 31, 2016.

As of Sep 30, 2017, total debt, capital leases and financing obligations was $10,016 million, up from $9,706 million as of Dec 31, 2016.

At the end of the third quarter, cash from operating activities was $1,119 million compared with $1,241 million in the year-ago period.

Guidance

CMS Energy raise the lower end of its 2017 adjusted earnings per share guidance in to the range of $2.15-$2.18, from the earlier guidance band of $2.14-$2.18. However, adjusted earnings are still expected to grow year over year in the range of 6-8% in 2017.

CMS Energy in 2018 adjusted expects earnings per share to be around $2.29-$2.33, reflecting annual growth of 6-8%.

Zacks Rank & Key Pick

Jackson, MI-based CMS Energy currently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the same space is DTE Energy (DTE - 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.

DTE Energy surpassed the Zacks Consensus Estimate in the trailing four quarters with an average positive earnings surprise of 3.81%. It has a long-term earnings growth rate of 6%.

Recent Peer Release

Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. However, the reported number improved 1.7% from the year-ago figure.

An Upcoming Peer Release

Edison International (EIX - Free Report) is scheduled to report third-quarter 2017 results on Oct 30. The company carries a Zacks Rank #3 (Hold) and has surpassed our consensus estimate in the trailing four quarters with an average positive surprise of 6.44%.

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