Back to top

Image: Bigstock

Why Is CMS Energy (CMS) Up 4.5% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for CMS Energy (CMS - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CMS Energy 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 Misses on Q1 Earnings, Revenues Up Y/Y
 
CMS Energy Corporation reported first-quarter 2019 adjusted earnings per share (EPS) of 75 cents, down 12.8% year over year. The bottom line also missed the Zacks Consensus Estimate of 77 cents by 2.60%.
 
Operational Performance
 
In the quarter under review, CMS Energy’s operating revenues summed $2,059 million, which outshined the Zacks Consensus Estimate of $1,935 million by 6.4%. The top line also improved 5.4% on a year-over-year basis.
 
The company’s operating expenses increased 6.9% to $1,700 million in the quarter under review.
 
Operating income in the first quarter was $359 million, down 1.1% from $363 million a year ago.
 
CMS Energy’s interest charges were $121 million, up 9% from $111 million in the year-ago period.
 
Financial Condition
 
CMS Energy had cash and cash equivalents of $234 million as of Mar 31, 2019, down from $153 million as of Dec 31, 2018.
 
As of Mar 31, 2019, total debt, capital leases and financing obligations (excluding securitization debt) stood at $11,791 million, up from $11,500 million as of Dec 31, 2018.
 
At the end of the first three months of 2019, cash from operating activities amounted to $617 million compared with $708 million in the prior year.
 
2019 Guidance
 
CMS Energy reaffirmed its adjusted earnings per share in the range of $2.47-$2.51 in 2019or 6-8% annual adjusted earnings per share growth.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 12.22% due to these changes.

VGM Scores

At this time, CMS Energy has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

CMS Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CMS Energy Corporation (CMS) - free report >>

Published in