CMS Energy Corporation (NYSE:CMS) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter reported figure of 40 cents. The bottom line however missed the Zacks Consensus Estimate of 69 cents.
Including one-time items, the company posted GAAP earnings of 58 cents per share in the reported quarter, up from 38 cents generated in the year ago quarter.
The year-over-year uptick in the bottom line can be attributed to higher operating income.
For 2019, the company posted adjusted earnings of $2.49 per share, up from $2.33 per share in 2018. The full-year bottom line came in line with the Zacks Consensus Estimate.
Operational Performance
In the quarter under review, CMS Energy’s operating revenues totaled $1,795 million, which missed the Zacks Consensus Estimate of $1,877 million by 4.4%. The top line also fell 1.9% on a year-over-year basis.
For 2019, the company recorded operating revenues of $6.85 billion, which missed the Zacks Consensus Estimate of $6.94 billion by 1.3%. The full-year top line slipped 0.4% from the year ago count.
The company’s operating expenses declined 6% to $1,484 million in the quarter under review.
Operating income in the fourth quarter was $311 million, up 24.4% from $250 million in the year-ago quarter.
CMS Energy’s interest charges were $134 million, up 10.7% from $121 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $140 million as of Dec 31, 2019, down from $153 million as of Dec 31, 2018.
As of Dec 31, 2019, total debt, capital leases and financing obligations (excluding securitization debt) were $12,996 million, up from $11,500 million as of Dec 31, 2018.
At the end of 2019, cash from operating activities amounted to $1,790 million compared with $1,703 million in 2018.
2020 Guidance
CMS Energy raised the lower end its 2020 adjusted earnings per share guidance to the range of $2.64-$2.68 from the prior band of $2.63-$2.68. Currently, the Zacks Consensus Estimate for the company’s current-year earnings is pegged at $2.67, slightly higher than the midpoint of the company’s new guided range.
However, the updated guidance range continues to reflect 6-8% growth from the year-ago quarter’s reported figure.
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 Release
NextEra Energy (NYSE:NEE) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Upcoming Releases
CenterPoint Energy (NYSE:CNP) is slated to report fourth-quarter 2019 results on Feb 27. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at 37 cents.
Dominion Energy (NYSE:D) is scheduled to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for earnings per share is pegged at $1.16.
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Dominion Energy Inc. (D): Free Stock Analysis Report
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