CMS Energy Set to Report Q2 Earnings: What's in Store for the Stock?

CMS Energy Corp. CMS is scheduled to release its second-quarter 2025 results on July 31, before market open. 

In the last reported quarter, the company posted a negative earnings surprise of 2.86%. However, CMS delivered a four-quarter average earnings surprise of 2.69%.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note Ahead of CMS’ Q2 Earnings

Cooler-than-normal temperatures prevailed in CMS’ service territories for the first two months of the April-June quarter, while above-average temperature was observed in June. So, the overall temperature influence on the company’s top-line performance can be expected to have been moderate during the second quarter. 

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation price-eps-surprise | CMS Energy Corporation Quote

Favorable rate hikes witnessed in the recent past are likely to have boosted the company’s overall revenues in the to-be-reported quarter.

Solid sales growth expectations, along with CMS’ various cost reduction efforts, favorable returns from its prior capital investment plans, a constructive electric rate order issued in March and ongoing benefits from utility-scale renewable projects are likely to have boosted the company’s second-quarter earnings.

However, severe weather conditions like heavy rainfall and several tornadoes that affected some parts of CMS’ service territories might have caused damage to some of its infrastructure. This might have pushed up its service restoration expenses, adversely impacting its bottom-line performance to some extent. 

Also, higher operating and maintenance costs due to the continued execution of CMS’ electric reliability roadmap might have put downward pressure on its quarterly earnings.

CMS’ Q2 Expectations

The Zacks Consensus Estimate for sales is pegged at $1.69 billion, which indicates year-over-year growth of 5.1%.

The consensus estimate for earnings is pegged at 67 cents, which calls for a year-over-year increase of 1.5%.

What the Zacks Model Unveils for CMS

Our proven model predicts an earnings beat for CMS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: CMS has an Earnings ESP of +4.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, CMS carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Below we have mentioned players from the same industry that also have the right combination of elements to beat earnings in the upcoming releases:

American Electric Power AEP is scheduled to report its second-quarter 2025 results on July 30, before market open. It has an Earnings ESP of +10.63% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $4.76 billion, which indicates a 3.9% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.16 per share.

IDACORP Inc. IDA is expected to report its second-quarter 2025 results on July 31, before market open. It has an Earnings ESP of +4.55% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $453.4 million, which implies a 0.5% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.70 per share.

Xcel Energy Inc. XEL is slated to report its second-quarter 2025 results on July 31, before market open. It has an Earnings ESP of +1.76% and a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for second-quarter sales is pegged at $3.31 billion, which calls for a 9.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 62 cents per share.

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This article originally published on Zacks Investment Research (zacks.com).

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