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CMS Energy's (CMS) Q4 Earnings Beat Estimates, Revenues Miss

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CMS Energy Corporation CMS reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%. The reported figure, however, deteriorated 17.6% on a year-over-year basis.

Including one-time items, the company posted GAAP earnings of 55 cents per share for the reported quarter, down from 59 cents in the year-ago period.

The year-over-year downturn in the bottom line can be attributed to higher interest charges incurred in the reported quarter.

For 2020, it reported adjusted earnings of $2.67, in line with the Zacks Consensus Estimate. The full-year earnings, however, were higher than the year-ago figure of $2.49.

CMS Energy Corporation Price, Consensus and EPS Surprise

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

Operational Performance

For the quarter under review, CMS Energy’s operating revenues were $1,798 million, which missed the Zacks Consensus Estimate of $1,830 million by 1.7%. The top line, however, inched up 0.2% on a year-over-year basis.

For 2020, the company recorded operating revenues worth $6.68 billion that missed the Zacks Consensus Estimate by 1.3%. Moreover, the full-year figure was lower than the year-ago level of $6.85 billion.

The company’s operating expenses were down 2.6% year over year to $1,446 million for the quarter under review.

Operating income for the fourth quarter was $352 million, up 13.2% from the year-ago figure.

CMS Energy’s interest charges were $140 million, up 4.5% from the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $168 million as of Dec 31, 2020, up from $140 million in the corresponding period of 2019.

As of Dec 31, 2020, total debt, capital leases and financing obligations (excluding securitization debt) were $14,971 million, significantly up from $12,996 million in the comparable period of 2019.

At 2020-end, cash from operating activities amounted to $1,276 million compared with $1,790 million at the end of 2019.

2021 Guidance

CMS Energy raised its 2021 adjusted earnings per share guidance to $2.83-$2.87 from the earlier expected range of $2.82-2.86. The Zacks Consensus Estimate for the company’s 2021 earnings is currently pegged at $2.85, which is in line with the midpoint of the 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

Xcel Energy Inc. XEL posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. NEE reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

An Upcoming Release

Duke Energy DUK is scheduled to report fourth-quarter 2020 results on Feb 11.

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CMS Energy Corporation (CMS) : Free Stock Analysis Report

Xcel Energy Inc. (XEL) : Free Stock Analysis Report

Duke Energy Corporation (DUK) : Free Stock Analysis Report

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

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