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| CMS Energy (CMS) Likely to Beat Q3 Earnings Estimates | |
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CMS Energy Corporation CMS will release its third-quarter 2015 financial results on Oct 29, 2015.
In the previous quarter, the utility provider reported a negative earnings surprise of 24.24%. Let’s see how things are turning out for the quarter.
Why a Likely Positive Surprise?
Our proven model shows that CMS Energy is likely to beat earnings this season because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to beat estimates.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +2.04%. This is because the Most Accurate estimate is 50 cents while the Zacks Consensus Estimate is pegged lower at 49 cents. This is a meaningful indicator of a likely positive earnings surprise.
Zacks Rank: CMS Energy currently carries a Zacks Rank #2.
The company’s Zacks Rank #2 and positive ESP make us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving the Better-than-Expected Earnings?
CMS Energy’s regulated electric power operations in Michigan generate a relatively stable and growing earnings stream. It is currently focused on several issues such as capacity maximization, reliability improvement, clean power generation and infrastructure upgrade.
The company plans to spend $15.5 billion between 2015 and 2024, majority of which will be directed toward infrastructure development projects. These initiatives will enable the company to provide reliable services to its customers and achieve its long-term EPS growth target of 5–7%.
In addition, warmer-than-expected temperatures during the third quarter should have a positive impact on utility demand.
During the third quarter, the company carried out some environment-friendly moves as well, which is definitely a boost for a utility in a climate of broad-based policy support for renewables, be it wind or solar. We note that coal accounts for about 33% of CMS Energy’s total generation mix at present. Last month, the company entered into an agreement with Geronimo Energy to purchase the electricity produced by the Apple Blossom Wind Farm, a 100-megawatt (“MW”) wind development project located in Huron County, MI.
The company is also planning to work on developing renewable energy in Michigan by launching Solar Gardens, a community solar program. Customers will be able to participate in the program, which is the first of its kind.
Other Stocks That Warrant a Look
Here are some other stocks in the utility sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
SCANA Corp. SCG has an earnings ESP of +2.08% and a Zacks Rank #2. It will report quarterly results on Oct 29, 2015.
Exelon Corp. EXC has an earnings ESP of +1.14% and a Zacks Rank #2. It will report quarterly results on Oct 30, 2015.
Ameren Corp. AEE has an earnings ESP of +1.53% and a Zacks Rank #2. It will report quarterly results on Nov 6, 2015.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CMS ENERGY (CMS): Free Stock Analysis Report AMEREN CORP (AEE): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report SCANA CORP (SCG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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CMS Energy Corporation
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CODE : CMS |
ISIN : US1258961002 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
CMS Energy est une société de production minière basée aux Etats-Unis D'Amerique. CMS Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 16,5 milliards US$ (14,4 milliards €). La valeur de son action a atteint son plus bas niveau récent le 18 avril 2014 à 0,12 US$, et son plus haut niveau récent le 17 avril 2024 à 58,25 US$. CMS Energy possède 282 420 406 actions en circulation. |