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CMS Energy (CMS) Q1 Earnings Beat Estimates, Revenues Miss

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CMS Energy Corporation (CMS - Free Report) reported first-quarter 2020 adjusted earnings per share (EPS) of 86 cents, which surpassed the Zacks Consensus Estimate of 77 cents by 11.7%.

Including one-time items, the company posted GAAP earnings of 85 cents per share in the reported quarter, up from 75 cents generated in the year-ago quarter.

The year-over-year uptick in the bottom line can be attributed to timely recovery of customer investments and cost management.

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 totaled $1,864 million, which missed the Zacks Consensus Estimate of $2,101 million by 11.3%. The top line also fell 9.5% on a year-over-year basis.

The company’s operating expenses declined 12% to $1,496 million in the quarter under review.

Operating income in the first quarter was $368 million, up 2.5% from $359 million in the year-ago quarter.

CMS Energy’s interest charges were $137 million, up from $121 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $834 million as of Mar 31, 2020, up from $140 million as of Dec 31, 2019.

As of Mar 31, 2020, total debt, capital leases and financing obligations (excluding securitization debt) were $14,086 million, up from $12,996 millionas of Dec 31, 2019.

At the end of first quarter 2020, cash from operating activities amounted to $201 million compared with $617 million in the year-ago quarter.

2020 Guidance

CMS Energy reiterated its 2020 adjusted earnings per share guidance in the range of $2.64-$2.68, as the ultimate impact of the coronavirus pandemic on Michigan's economy and the company’s business remain uncertain.

Currently, the Zacks Consensus Estimate for the company’s current-year earnings is pegged at $2.60, lower than the company provided guidance.

The guidance range indicates 6-8% growth from the year-ago 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.

Other Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

An Upcoming Release

Dominion Energy (D - Free Report) is scheduled to report first-quarter 2020 results on May 5. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at $1.10 per share.

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