CMS Energy Set to Report Q1 Earnings: What's in Store for the Stock?

CMS Energy Corp. CMS is scheduled to release its first-quarter 2025 results on April 24, before market open.

In the last reported quarter, the company posted an earnings surprise of 1.16%. CMS delivered a four-quarter average earnings surprise of 4.76%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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

Factors to Note Ahead of CMS’ Q1 Earnings

CMS’ service areas experienced below-normal temperature patterns, accompanied by moderate-to-heavy snowfall, for the first two months of the first quarter. This is likely to have boosted electricity demand from its customers for heating purposes this winter, which is expected to have contributed to its quarterly revenues.

CMS Energy Corporation Price and EPS Surprise

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

However, in March, above-normal temperatures prevailed in most parts of Michigan, which might have lowered electricity demand for heating and is likely to have some adverse impact on CMS’ top line in the soon-to-be-reported quarter. So, the overall temperature impact on the company’s revenue performance can be expected to have been moderate in the January-March 2025 quarter.

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

CMS Energy's earnings are likely to have benefited from the implementation of various cost reduction initiatives to lower its operating and maintenance expenses and solid revenue growth expectations.

However, severe weather conditions like an ice storm 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.

CMS’ Q1 Expectations

The Zacks Consensus Estimate for sales is pegged at $2.29 billion, which indicates year-over-year growth of 5.4%.

The consensus estimate for earnings is pegged at $1.11, which calls for a year-over-year increase of 14.4%.

What the Zacks Model Unveils for CMS

Our proven model does not conclusively predict 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 not the case here, as you will see below.

Earnings ESP: CMS has an Earnings ESP of -5.75%. 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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Entergy Corporation ETR is expected to report its first-quarter 2025 results on April 29, before market open. It has an Earnings ESP of +23.08% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for first-quarter sales is pegged at $3.01 billion, which indicates a 7.6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 62 cents per share, which calls for year-over-year growth of 14.8%.

Exelon Corporation EXC is slated to report its first-quarter 2025 results on May 1 before market open. It has an Earnings ESP of +1.05% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $6.31 billion, which indicates a 4.4% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 72 cents per share, which suggests year-over-year growth of 4.35%.

American Electric Power AEP is set to report first-quarter 2025 earnings on May 6, before market open. It has an Earnings ESP of +22.07% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for first-quarter sales is pegged at $5.36 billion, which indicates a 7.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $1.88 per share, which implies year-over-year growth of 48%.

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

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