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What's in the Offing for CMS Energy (CMS) in Q2 Earnings?
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CMS Energy Corporation (CMS - Free Report) is slated to report second-quarter 2022 results on Jul 28 before the opening bell.
Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.91%.
Factors to Note
During the second quarter, CMS Energy’s service territories witnessed warmer-than-normal temperatures. This, in turn, is likely to have boosted the electricity demand for cooling purposes among the company’s customers. Furthermore, CMS’ service territories experienced significant precipitation levels in February, resulting in wet weather conditions.
Such weather patterns are expected to have contributed favorably to the company’s revenues.
Meanwhile, the strong load growth on the residential and industrial front might have ramped up new connections, thereby contributing to the company’s revenues in the quarter to be reported.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.61 billion, suggesting an improvement of 3.5% from the year-ago quarter.
From the cost perspective, CMS Energy has been successfully eliminating waste through its Consumers Energy Way, which might have resulted in cost savings in the soon-to-be-reported quarter and offset the impact of inflation to some extent. This, in turn, is likely to have added impetus to the bottom line.
However, some parts of its service territories experienced severe weather conditions along with tornados. This might have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repairing. This, in turn, is likely to have weighed on its bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 44 cents per share, indicating a decline of 20% from the prior-year reported figure.
Our proven model does not conclusively predict an earnings beat for CMS Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three Utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #2.
The Zacks Consensus Estimate for American Electric’s second-quarter revenues is pegged at $4.19 billion, suggesting growth of 9.6% from the year-ago quarter. The Zacks Consensus Estimate for AEP’s second-quarter earnings is pegged at $1.13 per share, indicating a decline of 4.2% from the prior-year reported figure.
Consolidated Edison (ED - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 58 cents per share, indicating growth of 9.4% from the prior-year reported figure.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.13 billion, suggesting growth of 5.4% from the prior-year reported figure.
DTE Energy (DTE - Free Report) has an Earnings ESP of +3.41% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings, pegged at $1 per share, implies a decline of 41.2% from the prior-year quarter’s tally.
DTE Energy boasts a long-term earnings growth rate of 6%. DTE has a four-quarter earnings surprise of 8.97%.
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What's in the Offing for CMS Energy (CMS) in Q2 Earnings?
CMS Energy Corporation (CMS - Free Report) is slated to report second-quarter 2022 results on Jul 28 before the opening bell.
Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.91%.
Factors to Note
During the second quarter, CMS Energy’s service territories witnessed warmer-than-normal temperatures. This, in turn, is likely to have boosted the electricity demand for cooling purposes among the company’s customers. Furthermore, CMS’ service territories experienced significant precipitation levels in February, resulting in wet weather conditions.
Such weather patterns are expected to have contributed favorably to the company’s revenues.
Meanwhile, the strong load growth on the residential and industrial front might have ramped up new connections, thereby contributing to the company’s revenues in the quarter to be reported.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.61 billion, suggesting an improvement of 3.5% from the year-ago quarter.
From the cost perspective, CMS Energy has been successfully eliminating waste through its Consumers Energy Way, which might have resulted in cost savings in the soon-to-be-reported quarter and offset the impact of inflation to some extent. This, in turn, is likely to have added impetus to the bottom line.
However, some parts of its service territories experienced severe weather conditions along with tornados. This might have caused infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repairing. This, in turn, is likely to have weighed on its bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 44 cents per share, indicating a decline of 20% from the prior-year reported figure.
CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation price-eps-surprise | CMS Energy Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CMS Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #2.
The Zacks Consensus Estimate for American Electric’s second-quarter revenues is pegged at $4.19 billion, suggesting growth of 9.6% from the year-ago quarter. The Zacks Consensus Estimate for AEP’s second-quarter earnings is pegged at $1.13 per share, indicating a decline of 4.2% from the prior-year reported figure.
Consolidated Edison (ED - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 58 cents per share, indicating growth of 9.4% from the prior-year reported figure.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.13 billion, suggesting growth of 5.4% from the prior-year reported figure.
DTE Energy (DTE - Free Report) has an Earnings ESP of +3.41% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings, pegged at $1 per share, implies a decline of 41.2% from the prior-year quarter’s tally.
DTE Energy boasts a long-term earnings growth rate of 6%. DTE has a four-quarter earnings surprise of 8.97%.