CMS Energy Corporation (CMS) is a Jackson, Michigan-based energy company that focuses on independent and renewable power generation. Valued at a market cap of $21.1 billion, the company aims to retire all coal plants by 2040 and expand its renewable energy footprint, making it a key player in the transition to a cleaner energy future. It is scheduled to announce its fiscal Q2 earnings for 2025 on Thursday, Jul. 24.
Prior to this event, analysts project this energy company to report a profit of $0.63 per share, down 4.6% from $0.66 per share in the year-ago quarter. The company has topped Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $1.02 per share in the previous quarter fell short of the consensus estimates by 2.9%.
For the full year, analysts expect CMS to report EPS of $3.59, up 7.5% from $3.34 in fiscal 2024. Furthermore, its EPS is expected to grow 7.8% year-over-year to $3.87 in fiscal 2026.
CMS has rallied 19.7% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 13.4% uptick and the Utilities Select Sector SPDR Fund’s (XLU) 19.6% return over the same time frame.
On Apr. 24, shares of CMS closed up marginally after its mixed Q1 earnings release. The company’s operating revenue grew 12.5% year-over-year to $2.4 billion, surpassing the consensus estimates by 9.4%. However, despite beating revenue estimates by a solid margin, its adjusted EPS of $1.02, which advanced 5.2% from the year-ago quarter, fell short of the forecast figure by 2.9%.
Looking ahead, CMS reaffirmed its fiscal 2025 guidance, expecting adjusted EPS to be between $3.54 and $3.60. It also reiterated its long-term adjusted EPS growth of 6% to 8%, with continued confidence toward the high end. This reaffirmation of both near-term and long-term outlooks might have reassured investors and led to the stock’s slight upward price movement.
Wall Street analysts are moderately optimistic about CMS’ stock, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, 10 recommend "Strong Buy," and seven suggest "Hold.” The mean price target for CMS is $77.25, which indicates a 9.6% potential upside from the current levels.
