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What's in the Offing for CMS Energy (CMS) in Q3 Earnings?

CMS Energy Corporation CMS is slated to report third-quarter 2022 results on Oct 27 before the opening bell.

Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.13%.

Factors to Note

During the third quarter, CMS Energy’s service territories witnessed more or less normal temperatures, while drought-like conditions prevailed in some regions. So, the overall impact of the weather pattern on the company’s Q3 results is expected to be moderate.

The strong load growth on the commercial and industrial front might have ramped up new connections, thereby contributing to the company’s revenues in the quarter to be reported.

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

The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.76 billion, suggesting an improvement of 2.1% 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 soon-to-be-reported quarter and offset the impact of inflation to some extent. Moreover, the company is projected to have incurred lower operating and maintenance expenses, driven by the expectation of a more normalized level of storm activity this year versus the atypical levels experienced in 2021.

These factors are likely to have added impetus to CMS Energy’s Q3 bottom line.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 62 cents per share, indicating an improvement of 14.8% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for CMS Energy 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, which is not the case here.

Earnings ESP: The company’s Earnings ESP is -1.61%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Dominion Energy D has an Earnings ESP of +4.59% and a Zacks Rank #2.

Dominion Energy boasts a long-term earnings growth rate of 6.3%. The Zacks Consensus Estimate for Dominion Energy’s third-quarter sales and earnings is pegged at $3.90 billion and $1.09 per share, respectively.

Sempra Energy SRE has an Earnings ESP of +6.97% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter earnings, pegged at $1.90 per share, implies an improvement of 11.8% from the prior-year quarter’s tally.

Sempra Energy boasts a long-term earnings growth rate of 5.7%. SRE has a four-quarter earnings surprise of 4.37%.

FirstEnergy FE has an Earnings ESP of +3.45% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings is pegged at 77 cents per share, indicating a decline of 6.1% from the prior-year reported figure.

First Energy boasts a long-term earnings growth rate of 6.7%. The Zacks Consensus Estimate for FE’s third-quarter sales is pegged at $3.19 billion, suggesting growth of 2.2% from the prior-year reported figure.

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


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