CMS Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CMS Energy (NYSE:CMS) will unveil its latest earnings on Thursday, October 25, 2012. CMS Energy is a Michigan-based energy company.

CMS Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 57 cents per share, a rise of 7.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 62 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 61 cents during the last month. Analysts are projecting profit to rise by 6.9% compared to last year’s $1.55.

Last quarter, the company came in at net income of 40 cents per share against a mean estimate of profit of 38 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 13% in revenue from the year-earlier quarter to $1.65 billion.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $1.60 (7%), from $22.70 to $24.30. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 5.1% (+$1.13) over that span. It saw one of its worst periods between August 10, 2012 and August 17, 2012 when shares fell for six straight days, dropping 2.1% (-51 cents) over that span.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 3.7% in the fourth quarter of the last fiscal year and 15.2% in first quarter before falling again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 2.4% for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.22 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

A Look Back: In the second quarter, profit remained level at $100 million (37 cents a share) from the year earlier, beating analyst estimates. Revenue fell 2.3% to $1.33 billion from $1.36 billion.

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

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