CMS Energy Corp.
) announced second-quarter 2013 earnings per share of 29 cents on
both adjusted and GAAP basis, missing the Zacks Consensus
Estimate of 35 cents. Earnings were also 27.5% lower year over
CMS ENERGY (CMS): Free Stock Analysis Report
COPEL-ADR PR B (ELP): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
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Operating revenues of CMS Energy in the quarter under review
grossed $1.41 billion, up 5.5% year over year. Results were also
better than the Zacks Consensus Estimate of $1.37 billion.
Operating expense in the quarter rose 9.4% year over year to
$1.17 billion. Higher revenues could not fully offset the
increase in expenses, thereby resulting in a decline of 10.8% in
operating income to $232 million.
CMS Energy ended the second quarter with cash and cash
equivalents of $537 million, surging from $93 million as of Dec
31, 2012. Total debt, capital and finance leases rose to $7.0
billion, up 1.9% from the 2012 end level.
The company intends to implement cost reduction initiatives that
would prevent it from making any rate increases till 2014. The
main aim is to provide customers with safe, reliable and
affordable energy. It also plans to invest more than $1.5 billion
in its utility operations in energy reliability, smart energy,
renewable energy and customer service programs. Consumers Energy
is on track to meet the 10% renewable energy standard in
Michigan's energy reform law by 2015.
Recently, Consumers Energy filed for the approval of a
certificate of necessity from the Michigan Public Service
Commission ("MPSC") for its 700 megawatt ("MW") new natural
gas-fired power plant in Genesee County. The estimated cost of
the project is $750 million.
Consumers Energy has also entered into an agreement with
General Electric Company
). Per the contract, GE will supply 62 turbine units for CMS
Energy's Cross Winds Energy Park. Each turbine unit has a
generation capacity of 1.7 MW, which amounts to an installed
generation capacity of 105.4 MW. Construction of the Cross Winds
Energy Park in Tuscola County is expected to begin later this
year and come on line late in 2014.
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 missed the bottom-line estimate while the top-line
surpassed the consensus. Going forward, the company is committed
to providing safe and affordable energy to its customers. It is
also contributing to Michigan's economic growth through $7
billion of investment in operations through 2017. However, low
electric sales growth in a tepid economy and pending regulatory
cases keep us concerned. CMS Energy carries a Zacks Rank #3
However, stocks to look out for in the space are
Companhia Paranaense de Energia
Integrys Energy Group, Inc.
), both with a Zacks Rank #1 (Strong Buy).