CMS Energy Corporation (NYSE:CMS) reported fourth-quarter 2017 adjusted earnings per share of 51 cents which was in line with the Zacks Consensus Estimate of 51 cents. Quarterly earnings however surged 75.9% from the year-ago figure of 29 cents.
Excluding the one-time tax reform’s impact of 52 cents, the company reported loss of a penny as against earnings of 28 cents per share in the year-ago quarter.
For 2017, CMS Energy’s adjusted earnings were $2.17 per share, up from $2.03 from the year-ago period. The full-year adjusted earnings also came in line with the Zacks Consensus Estimate.
Operational Performance
In the quarter under review, CMS Energy’s operating revenues came in at $1,778 million, which surpassed the Zacks Consensus Estimate of $1,676 million by 6.1%. Moreover, on a year-over-year basis, revenues surged 8.4% from $1,640 million in the year-ago period.
For 2017, the company generated revenues worth $6.58 billion, which also surpassed the Zacks Consensus Estimate of $6.56 billion. Moreover, on a year-over-year basis, revenues surged 2.9% from $6.40 billion in the year-ago period.
The company’s operating expenses rose 2.9% year-over-year to $1,399 million during the quarter.
Operating income during the fourth quarter was $379 million, up 35.4% from $280 million a year ago.
CMS Energy’s interest charges were $110 million, compared with $111 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $182 million as of Dec 31, 2017, down from $235 million as of Dec 31, 2016.
As of Dec 31, 2017, total debt, capital leases and financing obligations was $10,185 million, up from $9,706 million as of Dec 31, 2016.
At the end of 2017, cash from operating activities was $1,705 million compared with $1,629 million in the year-ago period.
CMS Energy Corporation Price, Consensus and EPS Surprise
CMS Energy Corporation Price, Consensus and EPS Surprise | CMS Energy Corporation Quote
Guidance
CMS Energy raised its guidance for 2018 adjusted earnings to $2.30-$2.34 per share, from the earlier range of $2.29-$2.33, reflecting 6-8% annual adjusted earnings per share growth.
Zacks Rank & Key Pick
CMS Energy carries a Zacks Rank #4 (Sell).
A better-ranked stock in the same space is CenterPoint Energy (NYSE:CNP) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with an average positive earnings surprise of 6.42%. The company has a solid long-term earnings growth of 6%.
Recent Peer Releases
NextEra Energy (NYSE:NEE) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.
Dominion Energy (NYSE:D) reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3
times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
CMS Energy Corporation (CMS): Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Dominion Energy Inc. (D): Free Stock Analysis Report
Original post
Zacks Investment Research