The 10-second takeaway
For the quarter ended June 30 (Q2), CMS Energy beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Margins contracted across the board.
CMS Energy tallied revenue of $1.41 billion. The three analysts polled by S&P Capital IQ anticipated revenue of $1.36 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $1.33 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.29 for Q2 were 22% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, much worse than the prior-year quarter. Operating margin was 16.5%, 390 basis points worse than the prior-year quarter. Net margin was 5.7%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $6.56 billion. The average EPS estimate is $1.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 137 members out of 159 rating the stock outperform, and 22 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give CMS Energy a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CMS Energy is outperform, with an average price target of $29.58.
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