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CMS Energy's (CMS) Q3 Earnings Beat Estimates, Revenues Miss

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CMS Energy Corporation (CMS - Free Report) reported third-quarter 2020 adjusted earnings per share (EPS) of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.

Including one-time items, the company posted GAAP earnings of 76 cents per share in the reported quarter, up from 73 cents in the year-ago quarter.

The year-over-year uptick in the bottom line can be attributed to higher revenues and operating income in the reported quarter.

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation price-consensus-eps-surprise-chart | CMS Energy Corporation Quote

Operational Performance

In the quarter under review, CMS Energy’s operating revenues were $1,575 million, which missed the Zacks Consensus Estimate of $1,583 million by 0.5%. The top line, however, went up 1.9% on a year-over-year basis.

The company’s operating expenses inched up 0.9% to $1,206 million in the quarter under review.

Operating income in the third quarter was $369 million, up 5.1% from $351 million in the year-ago quarter.

CMS Energy’s interest charges were $143 million, up 7.5% from $133 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $519 million as of Sep 30, 2020, up from $140 million as of Dec 31, 2019.

As of Sep 30, 2020, total debt, capital leases and financing obligations (excluding securitization debt) were $14,897 million, up from $12,996 million as of Dec 31, 2019.

At the end of the third-quarter 2020, cash from operating activities amounted to $1,144 million compared with $1,395 million at the end of Sep 30, 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 $2.67, which lies above the midpoint of the guided range.

Moreover, CMS Energy issued 2021 adjusted earnings per share guidance of $2.82 to $2.86. The Zacks Consensus Estimate for the company’s 2021 earnings is currently pegged at $2.84, which is in line with the midpoint of the guided 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

Entergy (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.

American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

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