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CMS Energy (CMS) Misses on Q4 Earnings, Ups 2019 Guidance

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CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2018 adjusted earnings per share (EPS) of 40 cents, down 21.6% year over year. The bottom line also missed the Zacks Consensus Estimate of 41 cents by a penny.

The company delivered GAAP earnings of 38 cents against a loss of a penny incurred in the prior-year period.

For 2018, CMS Energy’s adjusted EPS came in at $2.33, up 7.4% from the prior-year figure of $2.17. The figure missed the Zacks Consensus Estimate of $2.34 by a penny.

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation Price, Consensus and EPS Surprise | CMS Energy Corporation Quote

Operational Performance

In the quarter under review, CMS Energy’s operating revenues summed $1,829 million, which outshined the Zacks Consensus Estimate of $1,535 million by 19.2%. The top line improved 2.9% on a year-over-year basis.

For 2018, operating revenues totaled $6.87 billion, which exceeded the Zacks Consensus Estimate of $6.64 billion by 3.5%. Annually revenues improved 4.4%.

The company’s operating expenses increased 12.9% to $1,579 million in the quarter under review.

Operating income in the fourth quarter was $250 million, down 34% from $379 million a year ago.

CMS Energy’s interest charges were $121 million, up 10% from $110 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $153 million as of Dec 31, 2018, down from $182 million as of Dec 31, 2017.

As of Dec 31, 2018, debt, capital leases and financing obligations stood at $9,646 million, up from $8,940 million as of Dec 31, 2017.

At the end of 2018, cash from operating activities amounted to $1,703 million compared with $1,705 million in the prior year.

2019 Guidance

CMS Energy currently expects its adjusted earnings per share in the range of $2.47-$2.51 in 2019, up from its prior forecast of $2.46-$2.50.

Zacks Rank

CMS Energy currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2018 operating earnings per share (EPS) of 72 cents in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.49 per share, which fell short of the Zacks Consensus Estimate of $1.51 by 1.3%.

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2018 operating earnings of 42 cents per share in line with the Zacks Consensus Estimate.

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