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CMS Energy (CMS) to Report Q1 Earnings: What's in Store? (Revised)

Zacks Equity Research
·3-min read

CMS Energy Corporation CMS is set to report first-quarter 2020 results on Apr 27, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 1.45%.

Moreover, in the trailing four quarters, CMS Energy came up with average negative earnings surprise of 2.83%.

Let's take a detailed look at the factors that are likely to have influenced this electricity provider’s performance in the first quarter.

Factors to Consider

During most of the first quarter of 2020, the company’s service territories experienced moderate snowfall.  Such weather conditions are likely to have resulted in high electricity demand, which, in turn, must have boosted CMS Energy’s top line in the soon-to-be-reported quarter.

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In 2019, the company signed a handful of contracts, backed by notable economic development in the state of Michigan. The contracts are likely to have bolstered the company’s quarterly sales. Higher adoption of electric vehicles across Michigan is likely to reflect on CMS Energy’s results.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.17 billion, indicating 5.6% improvement from the year-ago quarter 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

 

Positive settlement agreement for its gas rate case in September 2019 is likely to have benefited CMS Energy’s bottom line this time around. Also, the company’s cost reduction initiatives, largely driven by CE Way as well as lower storm restoration expenses, are expected to have bolstered quarterly earnings.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 85 cents, which indicates 13.3% improvement from the figure reported in the year-ago quarter.

In January, its board of directors has approved a 6.5% quarterly dividend hike on its common stock to 40.75 cents per share. This reflects the solid financial position that CMS Energy holds, which should get reflected in its first-quarter’s balance sheet.

Earnings Whispers

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

Earnings ESP: CMS Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy CNP has an Earnings ESP of +10.59% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.

Duke Energy DUK has an Earnings ESP of +0.68% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 12.

Consolidated Edison ED has an Earnings ESP of +0.69% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.

(We are reissuing this article to correct a mistake. The original article, issued on April 22, 2020, should no longer be relied upon.)


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Consolidated Edison Inc (ED) : Free Stock Analysis Report
 
CMS Energy Corporation (CMS) : Free Stock Analysis Report
 
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
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Zacks Investment Research