CMS Energy (CMS) Misses Q2 Earnings, Retains '17 EPS View

Jackson, MI-based CMS Energy Corporation (NYSE:CMS) reported second-quarter 2017 earnings per share of 33 cents. The figure missed the Zacks Consensus Estimate of 41 cents by 19.5%. Quarterly earnings also dropped 26.7% from the year-ago figure of 45 cents.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues came in at $1,449 million, beating the Zacks Consensus Estimate of $1,355.5 million by nearly 7%. Moreover, on a year-over-year basis, revenues improved 5.7% from $1,371 million.

The company’s operating expenses increased 10.2% to $1,208 million during the quarter.

Operating income during the second quarter was $241 million, down 12.4% from $275 million a year ago.

CMS Energy’s interest charges were $110 million, up 1.9% from $108 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $418 million as of Jun 30, 2017, up from $235 million as of Dec 31, 2016.

As of Jun 30, 2017, total debt, capital leases and financing obligations stood at $9,715 million, up from $9,706 million as of Dec 31, 2016.

At the end of the second quarter, cash from operating activities was $1,119 million compared with $1,101 million in the year-ago period.

Guidance

CMS Energy reaffirmed its 2017 adjusted earnings per share guidance in the range of $2.14–$2.18. Adjusted earnings are still expected to grow year over year in the range of 6–8% in 2017.

Zacks Rank

CMS Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

PG&E Corporation’s (NYSE:PCG) adjusted operating earnings per share (EPS) of 86 cents in the second quarter of 2017 surpassed the Zacks Consensus Estimate of 79 cents by 8.9%. Earnings were also up 30.3% from 66 cents reported in the year-ago quarter.

DTE Energy Company (NYSE:DTE) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NYSE:NEE) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.

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