We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CMS Energy (CMS) to Report Q4 Earnings: Is a Beat in Store?
Read MoreHide Full Article
CMS Energy Corporation (CMS - Free Report) is set to report fourth-quarter and 2018 financial results on Jan 31, before the market opens. The company is expected to come up with a positive surprise this earnings season. Last reported quarter, the company delivered an earnings surprise of 3.51%.
Let's take a closer look at the factors influencing CMS Energy’s quarterly results.
Why a Likely Positive Earnings Surprise
Our proven model shows a likely earnings beat for CMS Energy 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. This is the case here as you will see below.
Earnings ESP: CMS Energy has an Earnings ESP of +0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
CMS Energy’s regulated electric power operations in Michigan generate relatively stable earnings. The state of Michigan witnessed one of the wettest winters this fourth quarter, which subsequently will result in lower household expenditure on heating. This, in turn, may go on to adversely impact the company’s revenues in the upcoming fourth-quarter results. In line with this, the Zacks Consensus Estimate for fourth- quarter revenues is pegged at $1,535 million, reflecting year-over-year fall of 13.7%.
Such low revenue expectations are likely to hamper the company’s bottom-line results as well. Meanwhile, absence of tax benefits, courtesy of the latest U.S. Tax Cuts & Jobs Act, lowered CMS Energy’s earnings in the third quarter of 2017. To this end, we may expect the upcoming results to reflect lower tax benefits. Considering these factors, the consensus mark for the company’s fourth-quarter earnings is pegged at 41 cents per share, representing a year over year decline of 19.6%.
Other Stocks to Consider
Here are a few other players from the industry that have the right combination of elements to post an earnings beat this quarter.
Ameren Corp. (AEE - Free Report) has an Earnings ESP of +4.62% and a Zacks Rank #1. The company is scheduled to report fourth-quarter results on Feb 14.
Allete Inc. (ALE - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 14.
Xcel Energy (XEL - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is scheduled to report third-quarter results on Jan 31.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
CMS Energy (CMS) to Report Q4 Earnings: Is a Beat in Store?
CMS Energy Corporation (CMS - Free Report) is set to report fourth-quarter and 2018 financial results on Jan 31, before the market opens. The company is expected to come up with a positive surprise this earnings season. Last reported quarter, the company delivered an earnings surprise of 3.51%.
Let's take a closer look at the factors influencing CMS Energy’s quarterly results.
Why a Likely Positive Earnings Surprise
Our proven model shows a likely earnings beat for CMS Energy 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. This is the case here as you will see below.
Earnings ESP: CMS Energy has an Earnings ESP of +0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS Energy currently carries a Zacks Rank #2, which when combined with a positive ESP makes us confident of a probable earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation Price and EPS Surprise | CMS Energy Corporation Quote
Factors to Consider
CMS Energy’s regulated electric power operations in Michigan generate relatively stable earnings. The state of Michigan witnessed one of the wettest winters this fourth quarter, which subsequently will result in lower household expenditure on heating. This, in turn, may go on to adversely impact the company’s revenues in the upcoming fourth-quarter results. In line with this, the Zacks Consensus Estimate for fourth- quarter revenues is pegged at $1,535 million, reflecting year-over-year fall of 13.7%.
Such low revenue expectations are likely to hamper the company’s bottom-line results as well. Meanwhile, absence of tax benefits, courtesy of the latest U.S. Tax Cuts & Jobs Act, lowered CMS Energy’s earnings in the third quarter of 2017. To this end, we may expect the upcoming results to reflect lower tax benefits. Considering these factors, the consensus mark for the company’s fourth-quarter earnings is pegged at 41 cents per share, representing a year over year decline of 19.6%.
Other Stocks to Consider
Here are a few other players from the industry that have the right combination of elements to post an earnings beat this quarter.
Ameren Corp. (AEE - Free Report) has an Earnings ESP of +4.62% and a Zacks Rank #1. The company is scheduled to report fourth-quarter results on Feb 14.
Allete Inc. (ALE - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 14.
Xcel Energy (XEL - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is scheduled to report third-quarter results on Jan 31.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>