CMS Energy (CMS) Earnings Expected to Grow: Should You Buy?

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].