CMS Energy Beats on Q1 Earnings, Revenues Miss the Mark

Zacks

CMS Energy Corporation CMS reported first-quarter 2015 adjusted earnings per share of 73 cents, outpacing the Zacks Consensus Estimate of 66 cents by 10.6%. Quarterly earnings however declined 2.7% from the year-ago figure.

Operational Performance

In the quarter under review, CMS Energy’s operating revenues were $2,111 million, lagging the Zacks Consensus Estimate of $2,333 million by 9.5%. On a year-over-year basis, revenues declined 16.3%.

The company’s operating expenses were $1,714 million, down nearly 19% year over year.

Operating income stood at $397 million compared with $408 million a year ago.

CMS Energy’s interest charges remained flat year over year at $101 million.

Financial Condition

CMS Energy had cash and cash equivalents of $522 million as of Mar 31, 2015, substantially up from $207 million as of Dec 31, 2014.

As of Mar 31, 2015, total debt, capital leases and financing obligations increased marginally to $8.39 billion from $8.31 billion as of Dec 31, 2014.

In the first quarter of 2015, cash from operating activities was $760 million compared with $611 million in the year-ago period.

Guidance

CMS Energy reaffirmed its adjusted earnings per share guidance for 2015 in the range of $1.86–$1.89 per share. The company also reiterated its long-term adjusted earnings growth guidance of 5–7%.

Upcoming Releases

DTE Energy Co. DTE is expected to release its first-quarter results on Apr 24, 2015. The Zacks Consensus Estimate stands at $1.49 per share.

Edison International EIX is expected to release first-quarter results on Apr 28, 2015. The Zacks Consensus Estimate for the quarter is at 78 cents per share.

Entergy Corp. ETR is also scheduled to release its first-quarter results on Apr 28, 2015. The Zacks Consensus Estimate for the quarter is pegged at $1.36 per share.

Zacks Rank

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

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