CMS Energy Corporation
) announced earnings for the fourth quarter 2012 of 25 cents per
share on both adjusted and GAAP basis, beating the Zacks
Consensus Estimate of 24 cents. The results were also above the
year-ago earnings on both adjusted and GAAP basis of 15 cents per
Full-year 2012 adjusted earnings came in at $1.55 per share, in
line with the Zacks Consensus Estimate. The reported figure was
also higher than full year 2011 earnings of $1.45 per share. On a
reported basis, full-year 2012 earnings were $1.42 per share
versus full year 2011 earnings of $1.58 per share.
Operating revenue of CMS Energy in the quarter under review
grossed $1.67 billion, up from the prior year's $1.62
billion. Results were however lower than the Zacks
Consensus Estimate of $1.82 billion. Operating expense in the
quarter rose to $1.46 billion from $1.45 billion year over
CMS Energy reported operating income of $212 million, higher
than $174 million in the year-ago quarter. Overall, the company
reported net income of $67 million compared with a net income of
$41 million in the year-ago quarter.
CMS Energy's revenue decreased to approximately $6.25 billion in
full year 2012 versus $6.50 billion in full year 2011. It was
also below the Zacks Consensus Estimate of $6.52 billion.
CMS Energy ended full year 2012 with cash and cash equivalents of
$93 million, lower than $161 million at the end of full year
2011. Total debt, capital and finance leases rose to $7.38
billion versus $7.09 billion year over year. The company
generated cash flow from operations of $1.24 billion, higher than
$1.17 billion at full year-end 2011.
CMS Energy affirmed its guidance for full year 2013 adjusted
earnings in the range of $1.63-$1.66 per share. This is
consistent with the company's long-term plan of 5%-7% annual
CMS Energy is the holding company of Consumers Energy Company
(Consumers) and CMS Enterprises Company (Enterprises). Consumers
is an electric and gas utility company that provides electricity
and natural gas to Michigan's residents, and serves customers in
all 68 counties in Michigan's lower region. Enterprises, through
its subsidiaries and equity investments, is engaged primarily in
independent power production.
CMS Energy's regulated electric power operations in Michigan
generate a relatively stable and growing earnings stream. Over
the long term, the company presents a strong growth story, given
its favorable regulatory policies in Michigan, higher rates, a
robust balance sheet and incremental dividend. Thus, the company
presently retains a short-term Zacks Rank #2 (Buy).
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