CMS Energy Corporation
) reported second-quarter 2014 earnings per share of 30 cents both
on an adjusted and GAAP basis. Quarterly earnings surpassed the
Zacks Consensus Estimate of 26 cents by 15.4% and the year-ago
number by a penny on higher revenues.
Cms Energy Corporation - Earnings Surprise |
In the quarter under review, CMS Energy's operating revenues came
in at $1,468 million, beating the Zacks Consensus Estimate of
$1,382 million by 6.2%. On a year- over-year basis, revenues
climbed 4.4% from $1,406 million.
The company's operating expenses in the second quarter were $1,233
million, up around 5% year over year.
Despite the rise in operating expenses, operating income edged up
1.3% to $235 million from $232 million a year ago.
In the reported quarter, CMS Energy's interest charges declined
roughly 1% year over year to $101 million.
CMS Energy had cash and cash equivalents of $0.36 billion as of Jun
30, 2014, up from $0.17 billion as of Dec 31, 2013.
As of Jun 30, 2014, total debt, capital leases and financing
obligations rose to $8.03 billion from $7.88 billion as of Dec 31,
During the first half of 2014, cash from operating activities was
$0.94 billion versus $1.10 billion in the year-ago comparable
CMS Energy narrowed its earnings forecast for 2014 to $1.76-$1.78
per share from the previous projection of $1.74-$1.78 per share,
considering the strong first half results.
The company also increased the low end of its long-term adjusted
earnings growth guidance to 6%-7% from prior estimate of 5%-7%.
At the Peers
American Electric Power Co., Inc.
) is slated to release its second-quarter 2014 earnings on Jul 25.
The Zacks Consensus Estimate is pegged at 75 cents.
Wisconsin Energy Corp.
) is slated to release its second-quarter 2014 earnings on Jul 30.
The Zacks Consensus Estimate is currently at 52 cents.
CMS Energy continues to invest in utility infrastructure as well as
renewable ventures besides pursuing an inorganic growth strategy.
In the last five years, the company invested over $400 million in
its electricity operations. In addition, CMS Energy is currently
investing $150 million to extend its gas utility systems.
Apart from infrastructure projects, CMS Energy intends to acquire a
540 megawatt clean-burning natural gas power plant. The transaction
is expected to close in 2015.
As far as renewable projects are concerned, Cross Winds Energy Park
is expected to come online by this year.
The aforesaid initiatives will enable CMS Energy to meet increasing
power demand and provide reliable services, besides meeting the
government's environmental mandates.
CMS Energy currently has a Zacks Rank #3 (Hold). However, a
better-ranked stock in the same sector is
Westar Energy, Inc.
), carrying a Zacks Rank #1 (Strong Buy).
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