CMS Energy (CMS) reported $2.45 billion in revenue for the quarter ended March 2025, representing a year- over-year increase of 12.5%. EPS of $1.02 for the same period compares to $0.97 a year ago. Here is how CMS Energy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for CMS Energy here>>> Shares of CMS Energy have returned +0.3% over the past month versus the Zacks S&P 500 composite's -5.1% change. The ...

Financial Performance - CMS Energy reported earnings per share of $1.01 for Q1 2025, up from $0.96 in Q1 2024, with adjusted EPS at $1.02 compared to $0.97 in the previous year[1][2][12]. - The company reaffirmed its 2025 adjusted EPS guidance of $3.54 to $3.60, with long-term adjusted EPS growth projected at 6% to 8%[2][3]. - Operating revenue for Q1 2025 was $2.447 billion, an increase from $2.176 billion in Q1 2024, while operating income rose to $494 million from $412 million[12]. - Net income attributable to CMS Energy was $304 million for Q1 2025, compared to $287 million in Q1 2024, reflecting a year-over-year increase[12]. - The company reported net cash provided by operating activities of $1 billion for Q1 2025, compared to $956 million in Q1 2024[17]. Balance Sheet - Cash and cash equivalents increased to $465 million as of March 31, 2025, up from $103 million at the end of 2024[14]. - CMS Energy's total assets as of March 31, 2025, were $36.295 billion, an increase from $35.920 billion at the end of 2024[14]. - Current liabilities decreased to $1.920 billion as of March 31, 2025, down from $2.261 billion at the end of 2024[14]. Operational Goals - The company emphasized continued progress on customer investment projects in its electric and gas systems, supporting its operational and financial goals for 2025[3]. - Management views adjusted earnings as a key measure of the company's operating financial performance, using it for external communications with analysts and investors[20].

Core Insights - CMS Energy reported earnings per share of $1.01 for Q1 2025, an increase from $0.96 in Q1 2024, with adjusted earnings per share at $1.02 compared to $0.97 in the previous year [1][2][8] - The company reaffirmed its 2025 adjusted earnings guidance of $3.54 to $3.60 per share, with a long-term adjusted EPS growth target of 6 to 8 percent [2][3] - The CEO highlighted operational and financial progress, supported by a favorable electric rate case outcome and ongoing investments in electric and gas systems [3] Financial Performance - Operating revenue for Q1 2025 was $2.447 billion, up from $2.176 billion in Q1 2024 [7] - Operating expenses increased to $1.953 billion from $1.764 billion, resulting in operating income of $494 million, compared to $412 million in the prior year [8] - Net income attributable to CMS Energy was $304 million, up from $287 million, with diluted earnings per share at $1.01 compared to $0.96 [8][13] Cash Flow and Balance Sheet - Cash and cash equivalents increased to $465 million as of March 31, 2025, from $103 million at the end of 2024 [9] - Total assets rose to $36.295 billion from $35.920 billion, while total liabilities and equity also increased to $36.295 billion [9][10] - Net cash provided by operating activities was $1 billion, compared to $956 million in the previous year, while net cash used in investing activities rose to $918 million from $637 million [12]

Core Viewpoint - CMS Energy Corp. is expected to report its first-quarter 2025 results on April 24, with a focus on various factors influencing its performance, including weather conditions and revenue expectations [1][6]. Group 1: Weather Impact - The service areas of CMS experienced below-normal temperatures and moderate-to-heavy snowfall in the first two months of the quarter, likely increasing electricity demand for heating [2]. - However, above-normal temperatures in March may have reduced electricity demand, potentially moderating the overall revenue impact for the January-March 2025 quarter [3]. Group 2: Revenue and Earnings Expectations - The Zacks Consensus Estimate for CMS's sales is $2.29 billion, indicating a year-over-year growth of 5.4% [6]. - The consensus estimate for earnings is $1.11 per share, reflecting a year-over-year increase of 14.4% [6]. - Recent favorable rate hikes and cost reduction initiatives are expected to positively influence overall revenues and earnings [4]. Group 3: Operational Challenges - Severe weather conditions, such as an ice storm, may have caused infrastructure damage, leading to increased service restoration expenses that could negatively impact the bottom line [5]. Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for CMS, with an Earnings ESP of -5.75% and a Zacks Rank of 2 (Buy) [7][8].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for CMS Energy, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - CMS Energy is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year increase of +14.4% [3]. - Revenues are projected to be $2.29 billion, which is a 5.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. - The Most Accurate Estimate for CMS Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.75%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [7][8]. - CMS Energy's current Zacks Rank is 2, which complicates the prediction of an earnings beat despite the negative Earnings ESP [11]. Historical Performance - CMS Energy has consistently beaten consensus EPS estimates over the last four quarters, with a recent surprise of +1.16% when it reported earnings of $0.87 per share against an expectation of $0.86 [12][13]. Industry Comparison - FirstEnergy, another player in the electric power industry, is expected to report earnings of $0.59 per share, showing a year-over-year change of +7.3% [17]. - FirstEnergy's Earnings ESP is 0.85%, but its Zacks Rank of 4 (Sell) makes it difficult to predict an earnings beat [18].

Core Viewpoint - CMS Energy Corporation (CMS) presents a strong investment opportunity in the Zacks Utility Electric Power industry due to rising earnings estimates, strategic investments, robust return on equity (ROE), better solvency, and a strong dividend history [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for CMS Energy's 2025 earnings per share (EPS) has increased by 0.3% to $3.60 per share over the past 60 days - The revenue estimate for CMS in 2025 is $8.07 billion, indicating a growth of 7.4% from the reported figure in 2024 - The company's long-term earnings growth rate is projected at 7.7%, with an average earnings surprise of 4.76% over the last four quarters [2] Return on Equity - CMS has a return on equity (ROE) of 12.02%, outperforming the industry average of 9.77%, indicating more efficient utilization of funds to generate returns [3] Solvency - The times interest earned (TIE) ratio for CMS Energy at the end of Q4 2024 was 2.5, suggesting the company can comfortably meet its interest payment obligations in the near term [4] Dividend History - CMS Energy has a quarterly dividend of 54.25 cents per share, leading to an annualized dividend of $2.17, with a current dividend yield of 3.02%, surpassing the Zacks S&P 500 Composite average of 1.38% [5] Systematic Investments - CMS plans to invest $20 billion in infrastructure upgrades and clean energy generation from 2025 to 2029, with $14.8 billion allocated to enhance gas infrastructure and electric distribution systems, improve customer satisfaction, minimize energy waste, and support clean energy transformation [6] Stock Price Performance - Over the past three months, CMS shares have increased by 7.8%, compared to the industry's growth of 4% [7]

Group 1 - CMS Energy will provide its 2025 first quarter results along with a business and financial outlook on April 24, 2025, at 9:30 a.m. EDT [1] - A webcast of the presentation will be available on CMS Energy's website, and an audio replay will be accessible approximately three hours after the webcast [1] - The audio replay will be archived for 30 days in the "Investors" section of CMS Energy's website [1] Group 2 - CMS Energy is a Michigan-based energy company, with Consumers Energy as its primary business [2] - The company also owns and operates independent power generation businesses [2] - Additional information about CMS Energy can be found on its website, and email alert notifications can be signed up for in the Investor Relations section [2]

Market Overview - The Nasdaq Composite and the S&P 500 declined by 0.14% and 0.13% respectively, while the Dow Jones Industrial Average gained 0.34% [1] - Investor sentiment is influenced by President Trump's tariff policies and their potential impact on the U.S. economy [1] - Fed Chairman Jerome Powell indicated the central bank's commitment to two rate cuts by the end of the year, aiming for a half-percentage point reduction [1] Economic Indicators - The Federal Open Market Committee maintained borrowing rates in the range of 4.25-4.5%, aligning with market expectations [2] - Preliminary consumer sentiment for March fell to 57.9 from 64.7 in the previous month [2] - Retail sales increased by 0.2% in February, with a year-over-year growth of 3.1%, surpassing the Consumer Price Index (CPI) rate of 2.8% [2] Labor Market - Jobless claims rose by 2,000 to 223,000 for the week ending March 20, indicating a slight cooling in the labor market [3] - Layoff levels remain low, but individuals are staying unemployed longer compared to the previous year, suggesting a cooling trend [3] - Overall labor market conditions are neutral amid economic uncertainty, with limited layoffs and slowing hiring [3] Stock Performance - CMS Energy Corporation shares increased by 11.7% since being upgraded to Zacks Rank 2 (Buy) on January 27, outperforming the S&P 500's 7.3% decline [4] - Shionogi & Co., Ltd. shares returned 5.3% since its upgrade to Zacks Rank 2 on January 24, also outperforming the S&P 500's 7.5% decrease [5] - The Zacks Model Portfolio of Rank 1 stocks has outperformed the S&P 500 index by almost 13 percentage points since 1988, with an annualized average return of +23.9% [7] Focus List and Recommendations - Uber Technologies, Inc. shares gained 22.9% over the past 12 weeks, while Chevron Corporation returned 14.5% during the same period [11] - The Zacks Focus List portfolio returned +18.41% in 2024, compared to +25.04% for the S&P 500 index [12] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned -6.29% in December 2024, while achieving +16.26% for the year [16] Dividend Portfolio Performance - Johnson & Johnson returned 12.2% over the past 12 weeks, and Coca-Cola Company increased by 9.3% during the same timeframe [18] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -7.44% in December 2024, with a full-year return of +6.95% [19] Top 10 Stocks - Primo Brands Corporation has increased by 4.9% year-to-date, outperforming the S&P 500 index's 3.8% decrease [22] - The Top 10 portfolio achieved a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500 index's 469.98% [24]

Group 1: Federal Reserve and Economic Outlook - The Federal Reserve raised its annual inflation outlook to nearly 3% while keeping interest rates unchanged in the range of 4.25-4.5% for the second consecutive time this year [1][4] - The Fed lowered its GDP forecast for the year from 2.1% to 1.7% and increased its inflation gauge expectation to 2.7% from 2.5% [8] Group 2: Investment Recommendations - Given the current market volatility, investing in defensive sectors such as utilities and consumer staples is recommended, with specific stocks like CMS Energy Corporation, NiSource Inc., CenterPoint Energy, Molson Coors Beverage Company, and Carriage Services highlighted as good picks [2] - These recommended stocks are characterized as low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Group 3: Company Profiles - **CMS Energy Corporation**: Expected earnings growth rate of 7.8% for the current year, Zacks Rank 2, beta of 0.35, and a dividend yield of 2.95% [10] - **NiSource Inc.**: Expected earnings growth rate of 9.1%, Zacks Rank 2, beta of 0.50, and a dividend yield of 2.88% [12] - **CenterPoint Energy, Inc.**: Expected earnings growth rate of 8%, Zacks Rank 2, beta of 0.91, and a dividend yield of 2.47% [14] - **Molson Coors Beverage Company**: Expected earnings growth rate of 6.5%, Zacks Rank 1, beta of 0.81, and a dividend yield of 3.19% [16] - **Carriage Services**: Expected earnings growth rate of 21.1%, Zacks Rank 1, beta of 0.91, and a dividend yield of 1.17% [18]

Group 1 - CMS Energy is currently ranked 4 in the Zacks Sector Rank among 104 companies in the Utilities group [2] - The Zacks Rank for CMS Energy is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - CMS Energy has returned 9.2% year-to-date, outperforming the Utilities sector average return of 4.1% [4] Group 2 - Iberdrola S.A. has also outperformed the Utilities sector with a year-to-date return of 10.4% and holds a Zacks Rank of 2 (Buy) [4][5] - CMS Energy belongs to the Utility - Electric Power industry, which has an average return of 5.2% this year, indicating CMS's strong performance within this specific industry [5] - Both CMS Energy and Iberdrola S.A. are expected to continue their solid performance, making them noteworthy for investors in Utilities stocks [6]