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CMS Energy (CMS) Misses on Q4 Earnings, Tweaks EPS View
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CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter reported figure of 40 cents. The bottom line however missed the Zacks Consensus Estimate of 69 cents.
Including one-time items, the company posted GAAP earnings of 58 cents per share in the reported quarter, up from 38 cents generated in the year ago quarter.
The year-over-year uptick in the bottom line can be attributed to higher operating income.
For 2019, the company posted adjusted earnings of $2.49 per share, up from $2.33 per share in 2018. The full-year bottom line came in line with the Zacks Consensus Estimate.
CMS Energy Corporation Price, Consensus and EPS Surprise
In the quarter under review, CMS Energy’s operating revenues totaled $1,795 million, which missed the Zacks Consensus Estimate of $1,877 million by 4.4%. The top line also fell 1.9% on a year-over-year basis.
For 2019, the company recorded operating revenues of $6.85 billion, which missed the Zacks Consensus Estimate of $6.94 billion by 1.3%. The full-year top line slipped 0.4% from the year ago count.
The company’s operating expenses declined 6% to $1,484 million in the quarter under review.
Operating income in the fourth quarter was $311 million, up 24.4% from $250 million in the year-ago quarter.
CMS Energy’s interest charges were $134 million, up 10.7% from $121 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $140 million as of Dec 31, 2019, down from $153 million as of Dec 31, 2018.
As of Dec 31, 2019, total debt, capital leases and financing obligations (excluding securitization debt) were $12,996 million, up from $11,500 million as of Dec 31, 2018.
At the end of 2019, cash from operating activities amounted to $1,790 million compared with $1,703 million in 2018.
2020 Guidance
CMS Energy raised the lower end its 2020 adjusted earnings per share guidance to the range of $2.64-$2.68 from the prior band of $2.63-$2.68. Currently, the Zacks Consensus Estimate for the company’s current-year earnings is pegged at $2.67, slightly higher than the midpoint of the company’s new guided range.
However, the updated guidance range continues to reflect 6-8% growth from the year-ago quarter’s reported figure.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Upcoming Releases
CenterPoint Energy (CNP - Free Report) is slated to report fourth-quarter 2019 results on Feb 27. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at 37 cents.
Dominion Energy (D - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for earnings per share is pegged at $1.16.
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CMS Energy (CMS) Misses on Q4 Earnings, Tweaks EPS View
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter reported figure of 40 cents. The bottom line however missed the Zacks Consensus Estimate of 69 cents.
Including one-time items, the company posted GAAP earnings of 58 cents per share in the reported quarter, up from 38 cents generated in the year ago quarter.
The year-over-year uptick in the bottom line can be attributed to higher operating income.
For 2019, the company posted adjusted earnings of $2.49 per share, up from $2.33 per share in 2018. The full-year bottom line came in line with the Zacks Consensus Estimate.
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 totaled $1,795 million, which missed the Zacks Consensus Estimate of $1,877 million by 4.4%. The top line also fell 1.9% on a year-over-year basis.
For 2019, the company recorded operating revenues of $6.85 billion, which missed the Zacks Consensus Estimate of $6.94 billion by 1.3%. The full-year top line slipped 0.4% from the year ago count.
The company’s operating expenses declined 6% to $1,484 million in the quarter under review.
Operating income in the fourth quarter was $311 million, up 24.4% from $250 million in the year-ago quarter.
CMS Energy’s interest charges were $134 million, up 10.7% from $121 million in the year-ago period.
Financial Condition
CMS Energy had cash and cash equivalents of $140 million as of Dec 31, 2019, down from $153 million as of Dec 31, 2018.
As of Dec 31, 2019, total debt, capital leases and financing obligations (excluding securitization debt) were $12,996 million, up from $11,500 million as of Dec 31, 2018.
At the end of 2019, cash from operating activities amounted to $1,790 million compared with $1,703 million in 2018.
2020 Guidance
CMS Energy raised the lower end its 2020 adjusted earnings per share guidance to the range of $2.64-$2.68 from the prior band of $2.63-$2.68. Currently, the Zacks Consensus Estimate for the company’s current-year earnings is pegged at $2.67, slightly higher than the midpoint of the company’s new guided range.
However, the updated guidance range continues to reflect 6-8% growth from the year-ago quarter’s reported figure.
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 Release
NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Upcoming Releases
CenterPoint Energy (CNP - Free Report) is slated to report fourth-quarter 2019 results on Feb 27. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at 37 cents.
Dominion Energy (D - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for earnings per share is pegged at $1.16.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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