CMS Energy (CMS) To Report Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 22, 2019 10:19PM ET
CMS Energy Corporation (NYSE:CMS) is set to report second-quarter 2019 financial results on Jul 25, before the market opens. In the last reported quarter, the company delivered a negative earnings surprise of 2.60%.
In the trailing four quarters, CMS Energy came up with average positive earnings surprise of 3.89%.
Let's take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors Under Consideration
During most of the second quarter of 2019, the company’s service territories experienced below-normal temperatures along with freezing weather conditions. Alongside cold temperatures, its service territories witnessed significant wet weather conditions along with occasional snowfall. These are likely to result in higher electricity demand, which in turn should drive CMS Energy’s top line in the second quarter.
In the first-quarter earnings call, the company mentioned the settlement agreement for its gas and electric rate cases along with the settlement of its integrated resource plan. Such favorable rate case outcomes are likely to benefit CMS Energy’s bottom line.
However, the company has been witnessing a rise in income tax expenses for the past couple of quarters. We expect similar trends to continue in the to-be-reported quarter, which in turn might hurt the company’s bottom line.
For the second quarter, the Zacks Consensus Estimate for earnings is pegged at 48 cents, which is in line with the figure reported in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively show that CMS Energy is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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