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CMS Energy Posts In-line Earnings in Q4, Lifts 2016 Outlook

Jackson, MI-based CMS Energy CorporationCMS reported fourth-quarter 2015 adjusted earnings per share of 38 cents, in line with the Zacks Consensus Estimate. Quarterly earnings also climbed 8.6% from the year-ago figure of 35 cents.

Full-year earnings came in at $1.89 per share, beating the Zacks Consensus Estimate of $1.88 by 0.5%. Moreover, 2015 earnings were higher than the year-ago adjusted number of $1.77 by 6.8%.

Operational Performance

In the quarter under review, CMS Energy's operating revenues were $1,509 million, missing the Zacks Consensus Estimate of $2,358 million by 36%. On a year-over-year basis too, revenues plunged 14.29% from $1,758 million.

Full-year revenues came in at $6,456 million, lagging the Zacks Consensus Estimate of $7,181 million by 10.19%. Reported revenues also fell 10.9% from the year-ago figure of $7,179 million.

The company's operating expenses declined 14.9% year over year to $1,264 million.

Operating income was $245 million, down from $273 million a year ago.

CMS Energy's interest charges were $91 million, down from $104 million in the year-ago period.

Financial Condition

CMS Energy had cash and cash equivalents of $266 million as of Dec 31, 2015, up from $207 million as of Dec 31, 2014.

As of Dec 31, 2015, total debt, capital leases and financing obligations increased to $9,161 million from $8,312 million as of Dec 31, 2014.

In 2015, cash from operating activities was $1,640 million compared with $1,447 million in the year-ago period.

Guidance

CMS Energy raised its 2016 adjusted earnings per share guidance to $1.99-$2.02. The company reiterated its long-term adjusted earnings growth guidance of 5-7%.

Upcoming Peer Releases

DTE Energy Company DTE is scheduled to report fourth-quarter 2015 results on Feb 10.

Consolidated Edison, Inc. ED is scheduled to report fourth-quarter 2015 results on Feb 18.

PG&E Corp. PCG is slated to report fourth-quarter 2015 results on Feb 18.

Zacks Rank

CMS Energy currently has a Zacks Rank #3 (Hold).

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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.


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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