CMS Energy Corporation
) is expected to release its third-quarter 2012 results on
October 25, 2012. The Zacks Consensus Estimate for the third
quarter of 2012 is 61 cents per share (year-over-year increase of
14.62%) on revenues of $1,827 million (year-over-year increase of
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Second-quarter 2012, a Synopsis
CMS Energy Corporation announced adjusted earnings of 40 cents
per share for the second quarter of 2012, beating the Zacks
Consensus Estimate of 38 cents. The results were also higher than
the year-ago earnings of 26 cents per share. On a reported basis,
the company recorded earnings of 37 cents per share versus 38
cents in the year-ago quarter. In the reported quarter, the
variance of 3 cents between earnings on a reported and adjusted
basis is attributable to the effect of a voluntary employee
separation program that was implemented in the same period.
Operating revenue of CMS Energy in the quarter under review
grossed $1.33 billion, down 2.3% year over year. Results
were also lower than the Zacks Consensus Estimate by $214
Operating expenses in the quarter fell $1.07 billion from $1.16
billion year over year. CMS Energy reported operating income of
$260 million versus $207 million in the year-ago quarter.
Overall, the company reported net income of $100 million, flat
with the year-ago quarter.
Read our full coverage on this earnings report:
CMS Energy Beats EPS, Misses Rev.
Guidance for 2012
CMS Energy expects adjusted earnings for full-year 2012 in the
range of $1.52-$1.55 per share. This is consistent with the
company's long-term plan of 5%-7% annual earnings growth.
The analysts covered by Zacks expect CMS Energy to post
third-quarter 2012 earnings of 61 cents per share, higher than 53
cents delivered in the prior-year quarter. Currently, the Zacks
Consensus Estimate ranges between earnings of 58 cents and 62
cents a share.
For 2012, the Zacks Consensus Estimate stood at $1.55 per share,
higher than its prior-year earnings of $1.46 per share. The
current Zacks Estimate ranges between $1.53 and $1.60 per share.
Estimate Revisions Trend
We do not see any change for the third quarter as well as full
year 2012. None of the estimates moved upward or downward for the
last 7 days or 30 days for both third quarter as well as full
The analysts seem to be neutral for both the current quarter and
for full year 2012.
The Zacks Consensus Estimate for the third quarter 2012 remained
stagnant at 61 cents over the last 30 days. For full-year 2012
also, the consensus estimate remained static at $1.55 for the 30
With respect to earnings surprises, CMS Energy Corporation has
topped the Zacks Consensus Estimate in three of the last four
quarters. The average surprise over the last four quarter
remained at positive 2.68%. The earnings beat in December 2011
was the highest at 6.67%.
CMS Energy's regulated electric power operations in Michigan
generate a relatively stable and growing earnings stream. With
its robust pipeline of regulated investment opportunities and
favorable regulatory treatment, the company remains on track to
achieve its long-term earnings per share growth target of 5% to
7% and annual rate base growth of 6% to 7%. CMS Energy is
focusing on cost management. The company intends to reduce its
operations and maintenance costs by 4% this year and cut down the
number of employees by 3%. This will definitely help the company
to boost its profits.
However, we remain concerned about the unfavorable macro
backdrop, economic condition in Michigan, and regulatory cases.
Like its peer,
) CMS Energy presently retains a short-term Zacks #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the
CMS Energy Corporation is the holding company of Consumers Energy
Company (Consumers) and CMS Enterprises Company (Enterprises).
Consumers is a electric and gas utility company that provides
electricity and natural gas to Michigan's residents, and serves
customers in all 68 counties of Michigan's Lower Peninsula.
Enterprises, through its subsidiaries and equity investments, are
engaged primarily in independent power production.