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CMS Energy (CMS) to Report Q1 Earnings: A Beat in Store?
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CMS Energy Corporation (CMS - Free Report) is set to report first-quarter 2018 results on April 26, before the market opens.
The company posted in-line earnings in the last quarter. CMS Energy surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with the average beat being 0.61%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors at Play
Lower tax rate, courtesy of the recent tax reform, is likely to fuel the company’s bottom line. In sync with this, the company’s first-quarter Zacks Consensus Estimate for earnings is pegged at 80 cents, reflecting a year-over-year rise of 12.7%.
Weather conditions remain a key determinant for the company’s to-be-reported quarter. CMS Energy’s service territories witnessed colder-than-normal winters in the first quarter, which is likely to result in higher household expenditures on heating. Thus demand for electricity is likely to remain high. Needless to say, CMS Energy’s revenues in the quarter under review is likely to increase courtesy of this.
The Zacks Consensus Estimate for the company’s first-quarter sales is pegged at $1,829 million, up 0.5% from the year-ago quarter’s figure.
During the first quarter, management increased CMS Energy’s dividend by 7.5%, which indicates the company has solid cash flow. The company’s cash flow reserve is likely to improve in the quarter.
Our proven model conclusively shows that CMS Energy will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: CMS Energy has an Earnings ESP of +2.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS Energy carries a Zacks Rank #2, which along with positive Earnings ESP increases the probability of a positive earnings surprise.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) while going into an earnings announcement.
Other Stocks That Warrant a Look
Here are a few other players in the Utility sector that have the right combination of elements to post an earnings beat this quarter.
CenterPoint Energy (CNP - Free Report) will report first-quarter results on May 4. The company has an Earnings ESP of +0.59% and a Zacks Rank #2.
The AES Corporation (AES - Free Report) will report first-quarter results on May 8. The company has an Earnings ESP of +10.20% and a Zacks Rank #2
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Image: Bigstock
CMS Energy (CMS) to Report Q1 Earnings: A Beat in Store?
CMS Energy Corporation (CMS - Free Report) is set to report first-quarter 2018 results on April 26, before the market opens.
The company posted in-line earnings in the last quarter. CMS Energy surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with the average beat being 0.61%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors at Play
Lower tax rate, courtesy of the recent tax reform, is likely to fuel the company’s bottom line. In sync with this, the company’s first-quarter Zacks Consensus Estimate for earnings is pegged at 80 cents, reflecting a year-over-year rise of 12.7%.
Weather conditions remain a key determinant for the company’s to-be-reported quarter. CMS Energy’s service territories witnessed colder-than-normal winters in the first quarter, which is likely to result in higher household expenditures on heating. Thus demand for electricity is likely to remain high. Needless to say, CMS Energy’s revenues in the quarter under review is likely to increase courtesy of this.
The Zacks Consensus Estimate for the company’s first-quarter sales is pegged at $1,829 million, up 0.5% from the year-ago quarter’s figure.
During the first quarter, management increased CMS Energy’s dividend by 7.5%, which indicates the company has solid cash flow. The company’s cash flow reserve is likely to improve in the quarter.
CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation Price and EPS Surprise | CMS Energy Corporation Quote
Earnings Whispers
Our proven model conclusively shows that CMS Energy will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Zacks ESP: CMS Energy has an Earnings ESP of +2.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS Energy carries a Zacks Rank #2, which along with positive Earnings ESP increases the probability of a positive earnings surprise.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) while going into an earnings announcement.
Other Stocks That Warrant a Look
Here are a few other players in the Utility sector that have the right combination of elements to post an earnings beat this quarter.
NRG Energy (NRG - Free Report) has an Earnings ESP of +88.89% and a Zacks Rank #1. The company is slated to release first-quarter results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CenterPoint Energy (CNP - Free Report) will report first-quarter results on May 4. The company has an Earnings ESP of +0.59% and a Zacks Rank #2.
The AES Corporation (AES - Free Report) will report first-quarter results on May 8. The company has an Earnings ESP of +10.20% and a Zacks Rank #2
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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