With a market cap of $19.6 billion, Jackson, Michigan-based CMS Energy Corporation (CMS) is an energy provider focused on delivering electricity and natural gas through its primary subsidiary, Consumers Energy, serving 6.8 million residents across Michigan. With its innovative arm, NorthStar Clean Energy, CMS Energy also leads in renewable energy and decarbonization solutions, advancing clean energy initiatives nationwide. The company is expected to unveil its fiscal Q4 earnings results on Thursday, Feb. 6.
Before the event, analysts anticipate the energy company to report a profit of $0.86 per share, down 18.1% from $1.05 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the last reported quarter, CMS exceeded the consensus EPS estimate by a margin of 7.7%.
For fiscal 2024, analysts expect CMS to report EPS of $3.33, up 7.1% from $3.11 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 7.8% year-over-year to $3.59.
CMS' shares have risen 12.8% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 22.1% gain and the Utilities Select Sector SPDR Fund's (XLU) 21.1% increase over the same period.
Despite CMS Energy's better-than-expected Q3 EPS of $0.84, its shares fell marginally on Oct. 31, as revenue of $1.7 billion missed the consensus estimate. Additionally, rising interest charges of $178 million, up 8.5% year-over-year, and increased total debt and financial leases to $15.5 billion as of Sept. 30, 2024, raised concerns about financial pressure. The market was further cautious due to the company’s 2025 adjusted EPS guidance of $3.52 - $3.58, which fell below the consensus estimate. These factors overshadowed the 40% year-over-year improvement in net income to $253 million and contributed to the stock's decline.
Analysts' consensus rating on CMS Energy stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 18 analysts covering the stock, opinions include 10 "Strong Buys" and eight "Holds." This configuration is slightly more bullish than three months ago, with nine analysts suggesting a "Strong Buy." As of writing, CMS is trading below the average analyst price target of $72.94.
