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CMS Energy's (CMS) Q2 Earnings Beat Estimates, Revenues Miss

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CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share (EPS) of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%. Moreover, the bottom line surged 48.5% from 33 cents per share in the year-ago quarter.

Including one-time items, the company posted GAAP earnings of 48 cents per share in the reported quarter, up from 33 cents in the year-ago quarter.

The year-over-year uptick in the bottom line can be attributed to cost management coupled with favorable weather and sales mix.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues summed $1,443 million, which missed the Zacks Consensus Estimate of $1,512 million by 4.6%. The top line also edged down 0.1% on a year-over-year basis.

The company’s operating expenses declined 4.6% to $1,170 million in the quarter under review.

Operating income in the second quarter was $273 million, up 25.2% from $218 million in the year-ago quarter.

CMS Energy’s interest charges were $141 million, up 7.6% from $131 million in the year-ago period.

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy had cash and cash equivalents of $1,587 million as of Jun 30, 2020, up from $140 million as of Dec 31, 2019.

As of Jun 30, 2020, total debt, capital leases and financing obligations (excluding securitization debt) were $14,987 million, up from $12,996 million as of Dec 31, 2019.

At the end of the first half of 2020, cash from operating activities amounted to $796 million compared with $1,185 million in the first half of 2019.

2020 Guidance

CMS Energy reaffirmed its adjusted earnings per share guidance of $2.64-$2.68 for 2020. The Zacks Consensus Estimate for the company’s 2020 earnings is currently pegged at $2.65, below the midpoint of the company’s guidance range.

Zacks Rank

CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

Entergy Corporation (ETR - Free Report) reported second-quarter 2020 adjusted earnings of $1.37 per share, which surpassed the Zacks Consensus Estimate of $1.23 by 11.4%.

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