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CMS Energy (CMS) Q3 Earnings Beat Estimates, Improve Y/Y

Zacks Equity Research

CMS Energy Corporation CMS reported third-quarter 2019 earnings per share (EPS) of 73 cents, up 23.7% from the year-ago quarter’s reported figure of 59 cents. The bottom line also beat the Zacks Consensus Estimate of 71 cents by 2.8%.

The year-over-year uptick in the bottom line can be attributed to improved operating income.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues totaled $1,546 million, which missed the Zacks Consensus Estimate of $1,651 million by 6.4%. The top line also fell 3.3% on a year-over-year basis.

The company’s operating expenses declined 8.4% to $1,195 million in the quarter under review.

Operating income in the third quarter was $351 million, up 19.4% from $294 million in the year-ago quarter.

CMS Energy’s interest charges were $133 million, up 16.7% from $114 million in the year-ago period.

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

Financial Condition

CMS Energy had cash and cash equivalents of $403 million as of Sep 30, 2019, up from $153 million as of Dec 31, 2018.

As of Sep 30, 2019, total debt, capital leases and financing obligations (excluding securitization debt) were $12,931 million, up from $11,500 million as of Dec 31, 2018.

At the end of the first nine months of 2019, cash from operating activities amounted to $1,395 million compared with $1,565 million in the year-ago period.

2019 Guidance

CMS Energy reaffirmed its adjusted earnings per share guidance of $2.47-$2.51 for 2019, indicating 6-8% growth from the year-ago quarter’s reported figure. Currently, the Zacks Consensus Estimate for the company’s full-year earnings is pegged at $2.49, in line with the midpoint of the company’s projected 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.

Recent Utility Releases

NextEra Energy, Inc. NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, earnings were up 10.1% on a year-over-year basis.

Xcel Energy Inc. XEL posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%. The bottom line increased 5.2% from the year-ago quarter.

American Electric Power Co., Inc. AEP reported third-quarter 2019 adjusted earnings per share (EPS) of $1.46, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.

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