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CMS Energy (CMS) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
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CMS Energy Corporation (CMS - Free Report) reported third-quarter 2023 adjusted earnings per share of 61 cents, which missed the Zacks Consensus Estimate of 63 cents by 3.2%.
The company reported GAAP earnings of 60 cents per share compared with 56 cents in the third quarter of 2022.
Revenues
Operating revenues totaled $1,673 million, which lagged the Zacks Consensus Estimate of $2,087.3 million by 19.9%. The top line also decreased 17.3% on a year-over-year basis.
CMS Energy Corporation Price, Consensus and EPS Surprise
Total operating expenses were $1,402 million, down 20.6% from the year-ago quarter’s figure.
Net income for the quarter was $173 million, up 6.1% year over year. Our model projected a net income of $223.8 million for the same period.
Interest charges totaled $164 million, up 26.2% from that recorded in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $157 million as of Sep 30, 2023, compared with $164 million as of Dec 31, 2022.
As of Sep 30, 2023, total debt, financial leases and financing obligations (excluding securitization debt) were $15,311 million compared with $14,139 million as of Dec 31, 2022.
During the first nine months of 2023, the company generated cash from operating activities worth $1,904 million compared with $667 million in the year-ago period.
2023 Guidance
CMS reaffirmed its 2023 adjusted earnings projection in the range of $3.06-$3.12 per share. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $3.10 per share, just above the midpoint of the company’s guided range.
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line also improved 10.6% from the prior-year quarter’s level.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year.
Upcoming Releases
Xcel Energy (XEL - Free Report) is scheduled to announce third-quarter 2023 results on Oct 27. The Zacks Consensus Estimate for earnings is pinned at $1.31 per share, indicating an increase of 11% from the year-ago quarter’s level.
Xcel Energy’s long-term (three- to five-year) earnings growth is 6.5%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.05 billion.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2023 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, implying a decline of 28.8% from the prior-year quarter’s reported number.
Dominion’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.29 billion.
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CMS Energy (CMS) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2023 adjusted earnings per share of 61 cents, which missed the Zacks Consensus Estimate of 63 cents by 3.2%.
The company reported GAAP earnings of 60 cents per share compared with 56 cents in the third quarter of 2022.
Revenues
Operating revenues totaled $1,673 million, which lagged the Zacks Consensus Estimate of $2,087.3 million by 19.9%. The top line also decreased 17.3% on a year-over-year basis.
CMS Energy Corporation Price, Consensus and EPS Surprise
CMS Energy Corporation price-consensus-eps-surprise-chart | CMS Energy Corporation Quote
Operational Performance
Total operating expenses were $1,402 million, down 20.6% from the year-ago quarter’s figure.
Net income for the quarter was $173 million, up 6.1% year over year. Our model projected a net income of $223.8 million for the same period.
Interest charges totaled $164 million, up 26.2% from that recorded in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $157 million as of Sep 30, 2023, compared with $164 million as of Dec 31, 2022.
As of Sep 30, 2023, total debt, financial leases and financing obligations (excluding securitization debt) were $15,311 million compared with $14,139 million as of Dec 31, 2022.
During the first nine months of 2023, the company generated cash from operating activities worth $1,904 million compared with $667 million in the year-ago period.
2023 Guidance
CMS reaffirmed its 2023 adjusted earnings projection in the range of $3.06-$3.12 per share. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $3.10 per share, just above the midpoint of the company’s 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.
A Recent Utility Release
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line also improved 10.6% from the prior-year quarter’s level.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year.
Upcoming Releases
Xcel Energy (XEL - Free Report) is scheduled to announce third-quarter 2023 results on Oct 27. The Zacks Consensus Estimate for earnings is pinned at $1.31 per share, indicating an increase of 11% from the year-ago quarter’s level.
Xcel Energy’s long-term (three- to five-year) earnings growth is 6.5%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.05 billion.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2023 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, implying a decline of 28.8% from the prior-year quarter’s reported number.
Dominion’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.29 billion.