CMS Energy (CMS) Beats On Q3 Earnings, Revises Guidance

Jackson, MI-based CMS Energy Corporation (NYSE:CMS) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also jumped 32.1% from the year-ago figure of 53 cents.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues were $1,587 million, missing the Zacks Consensus Estimate of $1,609 million by nearly 1.4%. Nevertheless, on a year-over-year basis, revenues improved 6.8% from $1,486 million.

The company’s operating expenses increased 2.7% to $1,201 million.

Operating income was $386 million, up nearly 21.8% from $317 million a year ago.

CMS Energy’s interest charges were $110 million, up 8.9% from $101 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $339 million as of Sep 30, 2016, up from $266 million as of Dec 31, 2015.

As of Sep 30, 2016, total debt, capital leases and financing obligations stood at $9,572 million, up from $9,120 million as of Dec 31, 2015.

In the first nine months of 2016, cash from operating activities was $1,241 million, compared with $1,240 million in the year-ago period.

Guidance

CMS Energy raised the low end of its 2016 adjusted earnings per share guidance to the range of $2.00–$2.02 from the prior guidance of $1.99–$2.02. For 2017, the company expects adjusted earnings per share in the range of $2.13–$2.17. Adjusted earnings are still expected to grow in the range of 5–7% in 2016, and 6–8% in 2017 and beyond.

Peer Releases

Entergy Corporation (NYSE:ETR) reported third-quarter 2016 operational earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.

DTE Energy Company (NYSE:DTE) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.

An Upcoming Peer Release

AES Corporation (NYSE:AES) has an Earnings ESP of +5.88% and a Zacks Rank #3. It is expected to report earnings on Nov 4.

Zacks Rank

CMS Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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