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What's in the Offing for CMS Energy (CMS) in Q1 Earnings?

·4 min read

CMS Energy Corporation CMS is slated to report first-quarter 2022 results on May 3 before the opening bell.

Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.22%.

Factors to Note

During the first quarter, CMS Energy’s service territories witnessed warmer-than-normal temperatures accompanied by moderate-to-lower snowfall in some parts. This, in turn, is likely to have hampered the electricity demand for warming purposes among the company’s customers. Furthermore, CMS’ service territories experienced significant precipitation levels in February, resulting in wet weather conditions.

Such weather patterns are expected to have contributed unfavorably to the company’s revenues.

Meanwhile, CMS Energy expects the new connections to ramp up above pre-pandemic levels and anticipates strong load growth, which might have favorably contributed to the company’s revenues in the quarter to be reported.

Thus, the overall impact of the aforementioned factors is likely to have been mixed on the company’s first-quarter performance.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.13 billion, suggesting an improvement of 2.2% from the year-ago quarter.

From the cost perspective, CMS Energy has been successfully eliminating waste through its Consumers Energy Way, which might have resulted in cost savings in the to-be-reported quarter. This, in turn, is likely to have added impetus to the bottom line.

Also, the rate relief net of investment costs, largely driven by the electric rate order, may have benefited the company’s bottom line in the soon-to-be-reported quarter.

However, the increased operating and maintenance expenses might have an adverse impact on overall quarterly earnings.

The Zacks Consensus Estimate for first-quarter earningsis pegged at $1.13 per share, indicating a decline of 6.6% from the prior-year reported figure.

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for CMS this time. 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. However, that is not the case here.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three Utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:

WEC Energy Group WEC is slated to report its first-quarter results on May 2 before market open. WEC Energy Group has an Earnings ESP of +1.69% and a Zacks Rank #3 at present.

WEC Energy’s long-term earnings growth is pegged at 6.1%. The Zacks Consensus Estimate for WEC’s 2022 earnings per share suggests a rise of 3.1% year over year.

Dominion Energy D is scheduled to report its first-quarter results on May 5 before market open. It has an Earnings ESP of +0.86% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.17, respectively. D has a four-quarter average earnings surprise of 1.09%.

MGE Energy MGEE has an Earnings ESP of +3.63% and a Zacks Rank #2. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for MGE Energy’s first-quarter revenues and earnings is pegged at $176.3 million and 97 cents per share, respectively. MGEE has a four-quarter average earnings surprise of 1.70%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report

CMS Energy Corporation (CMS) : Free Stock Analysis Report

Dominion Energy Inc. (D) : Free Stock Analysis Report

MGE Energy Inc. (MGEE) : Free Stock Analysis Report

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