Zacks Research Expects Increased Earnings for CMS Energy

Key Points

• Zacks Research has increased its FY2025 earnings per share (EPS) estimate for CMS Energy to $3.59, up from the previous estimate of $3.58.
• CMS Energy reported $0.71 EPS for Q2 2023, beating the consensus estimate of $0.67, with revenues reaching $1.84 billion, surpassing the expected $1.68 billion.
• The company announced a quarterly dividend of $0.5425, yielding approximately 2.9%, and has a dividend payout ratio of 64.20%.

CMS Energy Corporation (NYSE:CMS - Free Report) - Analysts at Zacks Research raised their FY2025 earnings per share (EPS) estimates for CMS Energy in a report issued on Friday, October 10th. Zacks Research analyst Team now expects that the utilities provider will post earnings of $3.59 per share for the year, up from their previous estimate of $3.58. The consensus estimate for CMS Energy's current full-year earnings is $3.59 per share. Zacks Research also issued estimates for CMS Energy's Q1 2026 earnings at $1.12 EPS, Q2 2026 earnings at $0.65 EPS, Q4 2026 earnings at $1.07 EPS and Q2 2027 earnings at $0.88 EPS.

CMS Energy (NYSE:CMS - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The utilities provider reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.04. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.68 billion. CMS Energy had a return on equity of 12.07% and a net margin of 12.76%.CMS Energy's quarterly revenue was up 14.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.66 earnings per share. CMS Energy has set its FY 2025 guidance at 3.540-3.600 EPS.

Other research analysts have also issued research reports about the stock. Wall Street Zen lowered shares of CMS Energy from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of CMS Energy in a research note on Wednesday, October 8th. Wolfe Research reaffirmed a "peer perform" rating on shares of CMS Energy in a research note on Monday, July 7th. Morgan Stanley dropped their price target on shares of CMS Energy from $73.00 to $71.00 and set an "equal weight" rating on the stock in a research note on Thursday, September 25th. Finally, Barclays upped their target price on CMS Energy from $77.00 to $78.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 22nd. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $77.36.

CMS Energy Price Performance

Shares of CMS opened at $74.01 on Monday. The company has a market capitalization of $22.15 billion, a price-to-earnings ratio of 21.90, a P/E/G ratio of 2.83 and a beta of 0.40. CMS Energy has a fifty-two week low of $63.97 and a fifty-two week high of $76.45. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.00 and a quick ratio of 0.77. The business's 50-day moving average is $72.21 and its 200-day moving average is $71.64.

Institutional Investors Weigh In On CMS Energy

A number of institutional investors have recently added to or reduced their stakes in the company. Teachers Retirement System of The State of Kentucky grew its holdings in shares of CMS Energy by 4.0% during the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 23,064 shares of the utilities provider's stock worth $1,732,000 after purchasing an additional 893 shares in the last quarter. Private Trust Co. NA boosted its stake in CMS Energy by 14.4% during the first quarter. Private Trust Co. NA now owns 1,466 shares of the utilities provider's stock worth $110,000 after buying an additional 185 shares in the last quarter. Vontobel Holding Ltd. boosted its stake in CMS Energy by 9.4% during the first quarter. Vontobel Holding Ltd. now owns 4,662 shares of the utilities provider's stock worth $350,000 after buying an additional 400 shares in the last quarter. State of Alaska Department of Revenue boosted its stake in CMS Energy by 2.8% during the first quarter. State of Alaska Department of Revenue now owns 35,015 shares of the utilities provider's stock worth $2,629,000 after buying an additional 950 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in CMS Energy by 503.4% during the first quarter. Jane Street Group LLC now owns 175,804 shares of the utilities provider's stock worth $13,205,000 after buying an additional 146,667 shares in the last quarter. 93.57% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other CMS Energy news, SVP Brandon J. Hofmeister sold 2,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $73.62, for a total value of $147,240.00. Following the sale, the senior vice president owned 68,036 shares of the company's stock, valued at $5,008,810.32. This trade represents a 2.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Lauren Y. Snyder sold 2,220 shares of the firm's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $71.26, for a total value of $158,197.20. Following the completion of the sale, the senior vice president directly owned 13,512 shares in the company, valued at $962,865.12. This trade represents a 14.11% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.49% of the company's stock.

CMS Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Friday, August 8th were paid a $0.5425 dividend. The ex-dividend date was Friday, August 8th. This represents a $2.17 dividend on an annualized basis and a yield of 2.9%. CMS Energy's dividend payout ratio (DPR) is presently 64.20%.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources.

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