CMS Energy (CMS) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - The upcoming earnings report for CMS Energy is anticipated to influence its stock price significantly, with expectations of either an upward or downward movement based on the performance relative to consensus estimates [1]. Revenue and Earnings Estimates - CMS Energy is expected to report revenues of $1.69 billion, reflecting an 8.8% increase from the same quarter last year [2]. - The consensus EPS estimate for CMS Energy is projected at $0.64 per share, indicating a year-over-year decline of 14.7% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP indicates that the Most Accurate Estimate for CMS Energy is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.39%, suggesting a bullish outlook from analysts [14]. - Historically, CMS Energy has beaten consensus EPS estimates three out of the last four quarters, which may indicate a higher likelihood of a positive surprise in the upcoming report [16]. Industry Comparisons - NextEra Energy, another player in the electric power utility sector, is expected to report an EPS of $0.93 for the quarter ended June 2024, which represents a year-over-year increase of 5.7% [8]. - However, NextEra's consensus EPS estimate has been revised down by 8.8% over the last 30 days, resulting in a negative Earnings ESP of -0.18% [17][22]. Market Expectations - The market anticipates that CMS Energy will experience a year-over-year decline in earnings despite higher revenues, emphasizing the importance of actual results compared to estimates for stock price movements [9]. - Management's commentary during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations [10].