CMS Energy's (CMS) Q4 Earnings Beat, Revenues Fall Y/Y

CMS Energy Corporation CMS reported fourth-quarter 2023 adjusted earnings per share of $1.05, which surpassed the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the previous year.

The company’s GAAP earnings came in at $1.05 per share compared with 58 cents in the fourth quarter of 2022.

For 2023, the company reported adjusted earnings of $3.11 per share, which surpassed the Zacks Consensus Estimate of $3.10 by 0.3%. The bottom line also increased 7.6% from $2.89 per share reported in the previous year.

Revenues

Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.

For 2023, the company reported operating revenues of $7.46 billion, which missed the Zacks Consensus Estimate of $8.12 billion by 8.1%. The full-year top line also went down 13.3% from $8.60 billion in 2022.

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 in the fourth quarter were $1,544 million, down 23.1% from the year-ago quarter.

Net income for the quarter was $251 million, up 54% year over year. Our model projected a net income of $293.8 million for the same period.

Interest charges totaled $172 million, up 23.7% from that recorded in the year-ago quarter.

Financial Condition

CMS Energy had cash and cash equivalents of $227 million as of Dec 31, 2023, compared with $164 million as of Dec 31, 2022.

As of Dec 31, 2023, total debt and financial leases (excluding securitization debt) were $14,856 million compared with $14,139 million as of Dec 31, 2022.

For 2023, the company generated cash from operating activities worth $2,309 million compared with $855 million in the prior year.

2024 Guidance

CMS raised its 2024 adjusted earnings projection to $3.29-$3.35 per share from the earlier expected range of $3.27-$3.33. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $3.34 per share, which lies toward the higher end 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.

Recent Utility Releases

NextEra Energy, Inc. NEE reported fourth-quarter 2023 adjusted earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 6.1%. The bottom line was also up nearly 2% from the prior-year quarter.

For the fourth quarter, NextEra’s operating revenues were $6.87 billion, which surpassed the Zacks Consensus Estimate of $6.1 billion by 13.4%. The top line improved 11.2% year over year.

Xcel Energy XEL reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s earnings of 69 cents.

The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.

UGI Corporation UGI reported first-quarter fiscal 2024 earnings per share of $1.20, surpassing the Zacks Consensus Estimate of $1.12 by 7.1%. The bottom line improved 5.2% from the year-ago quarter’s earnings of $1.14.

Revenues of $2.12 billion missed the Zacks Consensus Estimate of $2.97 billion by nearly 28.77%. The top line also declined 23% from the year-ago quarter’s figure of $2.75 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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