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CMS Energy Stock Set to Report Q4 Earnings: What's in the Cards?

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CMS Energy Corporation (CMS - Free Report) is scheduled to release fourth-quarter 2024 earnings on Feb. 6, 2025, before market open.  
 
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

This utility provider delivered an earnings surprise of 7.69% in the last reported quarter. Moreover, it has a trailing four-quarter average earnings surprise of 4.71%. 

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of CMS’ Results

CMS’ service territories experienced warmer-than-normal temperature patterns for the majority of the fourth quarter. This is likely to have hurt electricity demand from its customers for heating purposes this winter, which might have adversely impacted CMS’ quarterly revenues.

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise

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

However, some parts of its service areas, especially the lake portions of Michigan, received heavy snowfall in December 2024, indicating the prevalence of cold temperature in these areas. This, in turn, must have boosted electricity demand from CMS consumers. So, the overall impact of temperature on CMS’ top line performance can be expected to have been moderate in the soon-to-be-reported quarter. 

Moreover, a booming economic development in Michigan, backed by a manufacturing renaissance bolstered by onshoring, unique state attributes, along with the inflation reduction as well as the CHIPS and Science Act in the recent past, is likely to have pushed up the state’s electricity consumption and CMS’ sales growth in the fourth quarter.  

On the bottom line front, CMS Energy's earnings are likely to have benefited from its ongoing cost savings initiatives and solid revenue growth expectations.

However, severe weather conditions like snowfall and a few floods that affected some parts of CMS’ service territories might have caused damage to some of its infrastructure. This might have pushed up its service restoration expenses and thereby hurt its bottom-line performance. Also, higher insurance premiums and IT-related expenses are likely to have put an additional burden on CMS Energy’s fourth-quarter earnings. 
 
During the quarter, the company revealed that it has completed its Mid-Michigan Pipeline, replacing and upgrading 55 miles of natural gas transmission pipeline in Clinton, Shiawassee, Ingham, Livingston and Washtenaw counties of Michigan. We expect more updates on this matter once CMS Energy releases its quarterly results.

CMS’ Q4 Expectations

The Zacks Consensus Estimate for sales is pegged at $2.14 billion, which indicates year-over-year growth of 9.8%.

The consensus estimate for earnings is pegged at 86 cents per share, which indicates a year-over-year decline of 18.1%.

What Our Model Predicts for CMS Energy

Our proven model does not predict an earnings beat for CMS Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of Zacks Rank #1 stocks here.

Stocks to Consider

Here are some players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

CenterPoint Energy (CNP - Free Report) is scheduled to report fourth-quarter results on Feb. 20, before market open. It has an Earnings ESP of +0.63% and a Zacks Rank of 2 at present. 

The Zacks Consensus Estimate for sales is pegged at $2.30 billion, which indicates a 5.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 40 cents per share, which indicates year-over-year growth of 25%.

PG&E Corporation (PCG - Free Report) is scheduled to report its fourth-quarter results on Feb. 13, before market open. It has an Earnings ESP of +1.64% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $7.25 billion, which indicates a 2.9% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 31 cents per share.

OGE Energy (OGE - Free Report) is scheduled to report fourth-quarter results on Feb. 19, before market open. It has an Earnings ESP of +2.41% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $672.5 million, which indicates an 18.7% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 48 cents per share, which indicates year-over-year growth of 100%. 

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