CMS Energy Corp.
) posted fourth-quarter 2013 earnings per share of 37 cents on
both adjusted and GAAP basis. The quarterly figure was on par
with the Zacks Consensus Estimate, but increased 48% on a
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For 2013, CMS Energy reported earnings of $1.66 per share
compared with $1.42 per share in 2012. The yearly figure
surpassed our projection by a penny.
Operating revenue in the reported quarter grossed $1,736 million,
up 4.0% year over year. The top line beat the Zacks Consensus
Estimate by $5.0 million.
In 2013, operating revenue was $6,566 million, up 5.0% year over
year. The top line was however short of the Zacks Consensus
Estimate by $64.0 million.
Total operating expenses were up 1.0% year over year to $1,472
million in the fourth quarter. The increase in expenses
notwithstanding, operating income spiked 24.5% year over year to
$264 million in the reported quarter, largely on the back of
CMS Energy ended 2013 with cash and cash equivalents of $172
million, surging from $93 million as of Dec 31, 2012. Total debt,
capital and finance leases rose to $7,879 million from $7,381
million as of Dec 31, 2012.
CMS Energy increased its earnings forecast for 2014 to $1.74 to
$1.78 per share from the prior guidance of $1.73 to $1.78 per
share. This is consistent with its long-term goal of 5% to 7%
annual earnings per share growth.
During the quarter, the company announced its plan to buy a 540
megawatt clean-burning natural gas power plant for $155.0 million
Michigan's largest utility and CMS Energy's main subsidiary,
Consumers Energy also has plans to invest about $15 billion in
its operations over the next 10 years to enhance customer value.
This comprises improvement in the delivery capacity of Consumers
Energy's natural gas system through investments in its 15 gas
storage fields, compressor stations and gas main replacement
The company continued its construction of the $120 million
Southwest Michigan Pipeline to strengthen gas delivery
reliability and support strategic supply purchases.
At the Peer
American Electric Power Company Inc
) reported fourth quarter 2013 operating earnings of 60 cents per
share, beating the Zacks Consensus Estimate of 56 cents by 7.1%.
The quarterly figure also improved 20% from the year-ago profit
of 50 cents.
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.
The company's focus on reducing costs, enhancing reliability, and
investments in Michigan would help in improving the top and the
bottom line. CMS Energy carries a Zacks Rank #2 (Buy).
However, stocks to look out for in the space are
National Grid plc
NRG Yield, Inc
), both with a Zacks Rank #1 (Strong Buy).