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CMS Energy (CMS) to Post Q4 Earnings: What's in the Cards?

Zacks Equity Research

CMS Energy Corporation CMS is set to report fourth-quarter and full-year 2019 results on Jan 30, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 3.08%.

However, in the trailing four quarters, CMS Energy came up with average positive earnings surprise of 17.74%.

Let's take a detailed look at the factors that are likely to have influenced this electricity provider’s performance in the fourth quarter.

Factors to Consider

During most of the fourth quarter of 2019, the company’s service territories experienced heavy precipitation. Further, the quarter ended with above-normal snowfall.  Such weather conditions are likely to have resulted in high electricity demand, which, in turn, must have boosted CMS Energy’s top line in the soon-to-be-reported quarter.

For the fourth quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.88 billion, indicating 2.6% improvement from the figure reported in the year-ago quarter.

Such solid top-line growth is expected to have boosted the company’s fourth-quarter earnings. Moreover, positive settlement agreement for its gas and electric rate cases in the recent past is likely to have benefited CMS Energy’s bottom line.

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise

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

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 69 cents, which indicates 72.5% improvement from the figure reported in the year-ago quarter.

Further, at the onset of December 2019, Cross Winds Energy Park Phase III in Tuscola County began serving CMS Energy customers in Michigan. This development should get duly reflected in the company’s upcoming quarterly results.

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. But that is not the case here.

Earnings ESP: CMS Energy has an Earnings ESP of 0.00%. 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 a few players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Ameren Corp AEE has an Earnings ESP of +2.73% and a Zacks Rank #3. The company will announce fourth-quarter 2019 earnings on Feb 26.

American Electric Power AEP has an Earnings ESP of +2.13% and a Zacks Rank #3. The company will announce fourth-quarter 2019 earnings on Feb 20.

CenterPoint Energy CNP has an Earnings ESP of +1.09% and a Zacks Rank #3. The company will announce fourth-quarter 2019 earnings on Feb 27.

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CMS Energy Corporation (CMS) : Free Stock Analysis Report
 
Ameren Corporation (AEE) : Free Stock Analysis Report
 
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CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
 
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