Whatn's in the Offing for CMS Energy (CMS) in Q3 Earnings?
CMS Energy Corporation CMS is slated to report third-quarter 2023 results on Oct 26, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 8.70%. CMS has a trailing four-quarter average earnings surprise of 3.69%.
Factors to Note
During the third quarter, CMS Energy’s service territories witnessed a mixed weather pattern. While its customers observed an average temperature pattern at the beginning of the July-September period, a below-normal temperature prevailed in some of the company’s service areas during late August, accompanied by moderate precipitation.
CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation price-eps-surprise | CMS Energy Corporation Quote
So, the weather pattern is expected to have a mixed impact on CMS’ overall third-quarter results.
Improving commercial and industrial electricity demand, along with favorable rate hikes witnessed in the recent past, is likely to have contributed to the company’s revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $2.10 billion, indicating a 3.8% increase from the year-ago quarter’s reported figure.
During the third quarter, CMS Energy’s service territories witnessed a few thunderstorms and tornados, which might have damaged its infrastructure. Higher operating and maintenance expenses incurred for mending these damages might have hurt the company’s bottom-line performance.
Nevertheless, sales growth and favorable effects of CMS’ numerous operational cost reduction initiatives are likely to have boosted its overall earnings.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 66 cents per share, indicating an improvement of 17.9% from the prior-year quarter’s reported figure.
What the Zacks Model Unveils
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. This is not the case here.
Earnings ESP: The company’s Earnings ESP is -3.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Entergy ETR has an Earnings ESP of +0.85% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 3.41%.
Entergy boasts a long-term earnings growth rate of 5.8%. The Zacks Consensus Estimate for ETR’s third-quarter earnings and sales is pegged at $2.99 per share and $4.05 billion, respectively.
NiSource NI has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company delivered a four-quarter average negative earnings surprise of 5.61%.
Sempra Energy SRE has an Earnings ESP of +1.84% and a Zacks Rank #2 at present. The consensus estimate for third-quarter earnings is pinned at $1 per share, indicating a 1% increase year over year.
Sempra Energy delivered a four-quarter average earnings surprise of 9.81%. The consensus mark for SRE’s third-quarter sales is pegged at $3.82 billion, indicating growth of 5.6% from that recorded in the prior-year quarter.
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NiSource, Inc (NI) : Free Stock Analysis Report
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CMS Energy Corporation (CMS) : Free Stock Analysis Report
