CMS Energy (CMS) Tops Q2 Earnings Estimates, Keeps View

Jackson, MI-based CMS Energy Corporation (NYSE:CMS) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%. Quarterly earnings also increased 80% from the year-ago figure of 25 cents.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues were $1,371 million, missing the Zacks Consensus Estimate of $1,464 million by nearly 6.4%. Nevertheless, on a year-over-year basis, revenues inched up 1.6% from $1,350 million.

The company’s operating expenses declined 5.2% to $1,086 million.

Operating income was $285 million, up nearly 40% from $204 million a year ago.

CMS Energy’s interest charges were $108 million, up 4.9% from $103 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $385 million as of Jun 30, 2016, up from $266 million as of Dec 31, 2015.

As of Jun 30, 2016, total debt, capital leases and financing obligations stood at $9,174 million, marginally lower than $9,120 million as of Dec 31, 2015.

In the first half of 2016, cash from operating activities was $1,101 million, compared with $1,262 million in the year-ago period.

Guidance

CMS Energy reaffirmed its 2016 adjusted earnings per share guidance in the range of $1.99–$2.02. Adjusted earnings are still expected to grow in the range of 5–7% in 2016 and 6–8% in 2017 and beyond.

Upcoming Peer Releases

NiSource Inc. (NYSE:NI) is slated to report second-quarter 2016 earnings on Aug 2. The Zacks Consensus Estimate stands at 6 cents.

PG&E Corporation (NYSE:PCG) scheduled to report second-quarter 2016 earnings on Jul 28. The Zacks Consensus Estimate stands at 94 cents.

NRG Energy, Inc. (NYSE:NRG) is slated to report second-quarter 2016 earnings on Aug 9. The Zacks Consensus Estimate stands at breakeven results.

Zacks Rank

CMS Energy currently has a Zacks Rank #2 (Buy).