CMS Energy Corporation (CMS) is a Jackson, Michigan-based energy company that focuses on independent and renewable power generation. Valued at a market cap of $21.1 billion, the company aims to retire all coal plants by 2040 and expand its renewable energy footprint, making it a key player in the transition to a cleaner energy future. It is scheduled to announce its fiscal Q2 earnings for 2025 on Thursday, Jul. 24.
Prior to this event, analysts project this energy company to report a profit of $0.63 per share, down 4.6% from $0.66 per share in the year-ago quarter. The company has topped Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $1.02 per share in the previous quarter fell short of the consensus estimates by 2.9%.
For the full year, analysts expect CMS to report EPS of $3.59, up 7.5% from $3.34 in fiscal 2024. Furthermore, its EPS is expected to grow 7.8% year-over-year to $3.87 in fiscal 2026.
CMS has rallied 19.7% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 13.4% uptick and the Utilities Select Sector SPDR Fund’s (XLU) 19.6% return over the same time frame.
On Apr. 24, shares of CMS closed up marginally after its mixed Q1 earnings release. The company’s operating revenue grew 12.5% year-over-year to $2.4 billion, surpassing the consensus estimates by 9.4%. However, despite beating revenue estimates by a solid margin, its adjusted EPS of $1.02, which advanced 5.2% from the year-ago quarter, fell short of the forecast figure by 2.9%.
Looking ahead, CMS reaffirmed its fiscal 2025 guidance, expecting adjusted EPS to be between $3.54 and $3.60. It also reiterated its long-term adjusted EPS growth of 6% to 8%, with continued confidence toward the high end. This reaffirmation of both near-term and long-term outlooks might have reassured investors and led to the stock’s slight upward price movement.
Wall Street analysts are moderately optimistic about CMS’ stock, with a “Moderate Buy” rating overall. Among 17 analysts covering the stock, 10 recommend “Strong Buy,” and seven suggest “Hold.” The mean price target for CMS is $77.25, which indicates a 9.6% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
