CMS Energy Corp Earnings: Revenues Fall, Bringing Down Profit

S&P 500 (NYSE:SPY) component CMS Energy Corporation (NYSE:CMS) posted a decrease in profit as revenue declined. CMS Energy is a Michigan-based energy company.

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CMS Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for CMS Energy Corporation fell to $67 million (25 cents per share) vs. $135 million (52 cents per share) a year earlier. This is a decline of 50.4% from the year-earlier quarter.

Revenue: Fell 15.2% to $1.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CMS Energy Corporation reported adjusted net income of 37 cents per share. By that measure, the company fell short of mean estimate of 39 cents per share. It fell short of the average revenue estimate of $2.18 billion.

Quoting Management: “We already planned to reduce our operations and maintenance costs by four percent this year and then reduce them by about one percent a year through 2016,” said John Russell, CMS Energy’s president and chief executive officer. “We are making additional cost reductions, while continuing to make substantial capital investments to serve customers and improve the environment.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 2 cents.

Net income has increased 17% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 64% from the year-earlier quarter.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 3.7% to $1.62 billion from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 30 cents per share from 28 cents. The average estimate for the fiscal year is $1.54 per share, falling from $1.55 thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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