CMS Energy Reports Q3 2024 Earnings Performance

CMS Energy Corporation (CMS - Free Report) has announced its earnings for the third quarter of 2024. The company reported earnings per share (EPS) of 84 cents, exceeding the Zacks Consensus Estimate of 78 cents by 7.7%. This figure also represents a 40% increase from last year's EPS of 60 cents.

The improvement in earnings can largely be attributed to higher overall revenues and increased operating income.

Revenue Overview

CMS Energy's operating revenues for the quarter reached a total of $1.74 billion. This fell short of the Zacks Consensus Estimate of $1.83 billion by 4.9%. Nonetheless, there was a notable year-over-year increase of 4.2% in the top line.

Operational Insights

The company reported operating expenses amounting to $1.38 billion, which is a decrease of 1.9% from the same quarter last year.

Net income for the quarter came in at $253 million, surpassing the previous year's figure of $176 million. This result was also better than the model's projection of $232 million for the third quarter.

However, interest charges for the quarter rose to $178 million, marking an 8.5% increase compared to the previous year.

Financial Health

As of September 30, 2024, CMS Energy reported cash and cash equivalents of $412 million, up from $227 million reported at the end of 2023. Total debt and financial leases (excluding securitization debt) climbed to $15.45 billion from $14.86 billion at the end of the previous year.

For the first nine months of 2024, the company generated cash from operating activities of approximately $1.97 billion, which is an increase from the $1.90 billion recorded in the same period last year.

2024 Guidance Update

CMS Energy has reiterated its earnings guidance for 2024, expecting adjusted EPS to be in the range of $3.29 to $3.35. Currently, the Zacks Consensus Estimate for 2024 earnings aligns closely with this range at $3.33 per share.

In addition, the company has introduced its adjusted earnings guidance for 2025, projecting EPS in the range of $3.52 to $3.58. The Zacks Consensus Estimate for 2025 currently stands at $3.60 per share, slightly above CMS Energy's forecast.

Company Ranking

Currently, CMS Energy holds a Zacks Rank of #4 (Sell).

Recent Updates in the Utility Sector

Edison International (EIX - Free Report) announced adjusted earnings of $1.51 per share for the third quarter of 2024, exceeding the Zacks Consensus Estimate of $1.39 by 8.6%. The earnings also increased from $1.38 in the previous year. Operating revenues for Edison International totaled $5.20 billion, surpassing the consensus estimate of $4.76 billion by 9.4%.

In another update, CenterPoint Energy, Inc. (CNP - Free Report) reported adjusted earnings of 31 cents per share for the third quarter of 2024, falling short of the Zacks Consensus Estimate of 36 cents by 13.9% and down 22.5% year over year. CNP's revenues were reported at $1.86 billion, also missing the consensus estimate of $1.88 billion by 1.2%.

Additionally, NextEra Energy, Inc. (NEE - Free Report) announced its adjusted earnings of $1.03 per share for the third quarter of 2024, beating the Zacks Consensus Estimate of 98 cents by 5.1%, with a year-over-year improvement of nearly 12.8%. Nevertheless, its operating revenues of $7.56 billion fell short of the consensus estimate of $8.45 billion by 10.5%.

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