CMS Energy (CMS) Q3 Earnings Miss Estimates, Revenues Fall Y/Y

CMS Energy Corporation CMS reported third-quarter 2023 adjusted earnings per share of 61 cents, which missed the Zacks Consensus Estimate of 63 cents by 3.2%.

The company reported GAAP earnings of 60 cents per share compared with 56 cents in the third quarter of 2022.

Revenues

Operating revenues totaled $1,673 million, which lagged the Zacks Consensus Estimate of $2,087.3 million by 19.9%. The top line also decreased 17.3% on a year-over-year basis.

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation Price, Consensus and EPS Surprise

CMS Energy Corporation price-consensus-eps-surprise-chart | CMS Energy Corporation Quote

Operational Performance

Total operating expenses were $1,402 million, down 20.6% from the year-ago quarter’s figure.

Net income for the quarter was $173 million, up 6.1% year over year. Our model projected a net income of $223.8 million for the same period.

Interest charges totaled $164 million, up 26.2% from that recorded in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $157 million as of Sep 30, 2023, compared with $164 million as of Dec 31, 2022.

As of Sep 30, 2023, total debt, financial leases and financing obligations (excluding securitization debt) were $15,311 million compared with $14,139 million as of Dec 31, 2022.

During the first nine months of 2023, the company generated cash from operating activities worth $1,904 million compared with $667 million in the year-ago period.

2023 Guidance

CMS reaffirmed its 2023 adjusted earnings projection in the range of $3.06-$3.12 per share. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $3.10 per share, just above the midpoint of the company’s guided range.

Zacks Rank

CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

A Recent Utility Release

NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line also improved 10.6% from the prior-year quarter’s level.

For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year.

Upcoming Releases

Xcel Energy XEL is scheduled to announce third-quarter 2023 results on Oct 27. The Zacks Consensus Estimate for earnings is pinned at $1.31 per share, indicating an increase of 11% from the year-ago quarter’s level.

Xcel Energy’s long-term (three- to five-year) earnings growth is 6.5%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.05 billion.

Dominion Energy D is scheduled to announce third-quarter 2023 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, implying a decline of 28.8% from the prior-year quarter’s reported number.

Dominion’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.29 billion.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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