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CMS Energy (CMS) to Report Q3 Earnings: What's in Store?

Zacks Equity Research

CMS Energy Corporation CMS is set to report third-quarter 2019 results on Oct 24, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 25.00%.

In the trailing four quarters, CMS Energy came up with average negative earnings surprise of 6.63%.

Factors to Consider

During most of the third quarter of 2019, the company’s service territories experienced heavy precipitation. Such weather condition is likely to have resulted in higher electricity demand, which, in turn, must have boosted CMS Energy’s top line in the third quarter.

For the third quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.65 billion, indicating 3.3% improvement from the figure reported in the year-ago quarter.

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, strong storm activity in the months of August and September might have pushed up its expenses related to restoration of electricity. Nevertheless, positive settlement agreement for its gas and electric rate cases along with the settlement of its integrated resource plan in the recent past is likely to have offset these costs and benefited CMS Energy’s bottom line.

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 71 cents, which indicates 20.3% improvement from the figure reported in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively 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 chances of an earnings beat. But that is not the case here.

Earnings ESP: CMS Energy has an Earnings ESP of -11.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are a few players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corporation ETR has an Earnings ESP of +2.04% and a Zacks Rank #3. The company is expected to release third-quarter 2019 results on Oct 30.

The Southern Company SO has an Earnings ESP of +0.60% and a Zacks Rank #2. The company is expected to release third-quarter results on Oct 30.

American Electric Power Company, Inc. AEP has an Earnings ESP of +2.68% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Oct 24.

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