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CMS Energy (CMS) Up 3.6% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for CMS Energy Corporation (CMS - Free Report) . Shares have added about 3.6% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CMS Energy Reports In-Line Q4 Earnings, Down Y/Y
CMS Energy reported fourth-quarter 2016 adjusted earnings per share of $0.29 were in line with the Zacks Consensus Estimate. However, quarterly earnings declined 23.7% from the year-ago figure of $0.38.
Full-year earnings came in at $2.02 per share, in line with the Zacks Consensus Estimate. Moreover, 2016 earnings were higher than the year-ago adjusted number of $1.89 by 6.9%.
Operational Performance
In the quarter under review, CMS Energy’s operating revenues were $1,640 million, beating the Zacks Consensus Estimate of $1,606 million by nearly 2.1%. Again, on a year-over-year basis, revenues improved 8.7% from $1,509 million.
Full-year revenues came in at $6.40 million, lagging the Zacks Consensus Estimate of $6.78 billion by 5.6%. Reported revenues also fell 0.9% from the year-ago figure of $6.46 billion.
The company’s operating expenses increased 6.8% to $1,350 million during the quarter.
Operating income during the fourth quarter was $290 million, up nearly 18.4% from $245 million a year ago.
CMS Energy’s interest charges were $111 million, up 22% from $91 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $235 million as of Dec 31, 2016, down from $266 million as of Dec 31, 2015.
As of Dec 31, 2016, total debt, capital leases and financing obligations stood at $9,706 million, up from $9,120 million as of Dec 31, 2015.
In 2016, cash from operating activities was $1,629 million, compared with $1,640 million in the year-ago period.
Guidance
CMS Energy raised its 2017 adjusted earnings per share guidance to the range of $2.13–$2.18 from the prior guidance of $2.13–$2.17. Adjusted earnings are still expected to grow in the range of 6–8% in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
At this time, CMS Energy's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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CMS Energy (CMS) Up 3.6% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for CMS Energy Corporation (CMS - Free Report) . Shares have added about 3.6% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CMS Energy Reports In-Line Q4 Earnings, Down Y/Y
CMS Energy reported fourth-quarter 2016 adjusted earnings per share of $0.29 were in line with the Zacks Consensus Estimate. However, quarterly earnings declined 23.7% from the year-ago figure of $0.38.
Full-year earnings came in at $2.02 per share, in line with the Zacks Consensus Estimate. Moreover, 2016 earnings were higher than the year-ago adjusted number of $1.89 by 6.9%.
Operational Performance
In the quarter under review, CMS Energy’s operating revenues were $1,640 million, beating the Zacks Consensus Estimate of $1,606 million by nearly 2.1%. Again, on a year-over-year basis, revenues improved 8.7% from $1,509 million.
Full-year revenues came in at $6.40 million, lagging the Zacks Consensus Estimate of $6.78 billion by 5.6%. Reported revenues also fell 0.9% from the year-ago figure of $6.46 billion.
The company’s operating expenses increased 6.8% to $1,350 million during the quarter.
Operating income during the fourth quarter was $290 million, up nearly 18.4% from $245 million a year ago.
CMS Energy’s interest charges were $111 million, up 22% from $91 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $235 million as of Dec 31, 2016, down from $266 million as of Dec 31, 2015.
As of Dec 31, 2016, total debt, capital leases and financing obligations stood at $9,706 million, up from $9,120 million as of Dec 31, 2015.
In 2016, cash from operating activities was $1,629 million, compared with $1,640 million in the year-ago period.
Guidance
CMS Energy raised its 2017 adjusted earnings per share guidance to the range of $2.13–$2.18 from the prior guidance of $2.13–$2.17. Adjusted earnings are still expected to grow in the range of 6–8% in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
CMS Energy Corporation Price and Consensus
CMS Energy Corporation Price and Consensus | CMS Energy Corporation Quote
VGM Scores
At this time, CMS Energy's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.