CMS Energy Reports Strong Quarterly Earnings, Surpassing Estimates

CMS Energy (NYSE:CMS) released its quarterly earnings report on Thursday, revealing a positive performance that exceeded analysts' expectations. The utilities company reported earnings of $0.84 per share for the quarter, which was $0.06 higher than the consensus estimate of $0.78, according to Briefing.com. The total revenue for the quarter amounted to $1.74 billion, falling short of the estimated $1.88 billion. CMS Energy's return on equity stood at 12.25%, and the company boasted a net profit margin of 13.10%. Compared to the same quarter last year, the revenue increased by 4.2%. Notably, during the previous year, the company reported earnings of $0.61 per share.

Stock Performance of CMS Energy

On Friday, CMS Energy shares traded down by $1.31 midday, bringing the stock price to $68.30. A total of 2,807,363 shares changed hands, which is above the average trading volume of 2,256,258 shares. The company's market cap is now at $20.40 billion, with a price-to-earnings (P/E) ratio of 21.23 and a P/E to growth (P/E/G) ratio of 2.79. CMS Energy has a beta of 0.41, alongside a quick ratio of 0.87, a current ratio of 1.18, and a debt-to-equity ratio of 1.80. The stock's 50-day moving average is $69.78, and the 200-day moving average is $64.54. CMS Energy's stock has seen a 12-month low of $54.13 and a high of $72.40.

Dividend Increase Announced

In addition to its earnings report, CMS Energy announced an increase in its quarterly dividend. Shareholders will receive a dividend payment of $0.515 on November 27th, which is an uptick from the previous dividend of $0.51. This update translates to an annualized dividend of $2.06, yielding approximately 3.02%. The ex-dividend date for this payout is set for November 13th, and the current payout ratio stands at 63.19%.

Recent Analyst Ratings Adjustments

Several analysts have recently reassessed their ratings for CMS Energy. Mizuho downgraded the stock from an "outperform" rating to a "neutral" rating while adjusting their price target down from $76.00 to $72.00. Conversely, Guggenheim raised their price target to $67.00, assigning a "buy" rating. Wells Fargo increased their price target from $70.00 to $77.00 and classified the stock as "overweight." On the other hand, StockNews.com upgraded shares from a "sell" rating to a "hold" rating. Lastly, Barclays shifted their price objective from $65.00 to $68.00, maintaining an "equal weight" rating. Overall, seven analysts have given the stock a hold rating, while nine have issued buy ratings, resulting in an average rating of "Moderate Buy" and a consensus price target of $69.85, according to MarketBeat.

Overview of CMS Energy

CMS Energy Corporation is a leading energy provider, primarily operating in Michigan. The company has three main business segments: Electric Utility, Gas Utility, and Enterprises. Within the Electric Utility segment, CMS Energy is involved in generating, purchasing, transmitting, distributing, and selling electricity. The electricity generated comes from a variety of sources including coal, wind, gas, renewable resources, oil, and nuclear energy.

Earnings, Stocks, Dividend