A month has gone by since the last earnings report for CMS Energy (CMS). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CMS Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
CMS Energy Q1 Earnings Beat Estimates, Revenues Increase Y/Y
CMS Energy Corporation reported first-quarter 2026 earnings per share (EPS) of $1.13, which beat the Zacks Consensus Estimate of $1.11 by 1.8%. The bottom line also increased 10.8% from $1.02 in the prior-year quarter.
The company reported GAAP earnings of $1.10 per share, up from $1.01 recorded in the year-ago quarter.
CMS' Revenues
Operating revenues totaled $2.73 billion, which topped the Zacks Consensus Estimate of $2.53 billion by 8.1%. The top line also increased 11.6% from $2.45 billion in the prior-year quarter.
Operational Performance of CMS
CMS' operating expenses amounted to $2.24 billion, up 14.7% from the year-ago quarter’s figure.
Operating income was $490 million, lower than the year-ago quarter’s figure of $494 million.
Interest charges totaled $203 million, up 9.1% from that recorded in the year-ago quarter.
Financial Condition of CMS
CMS Energy had cash and cash equivalents of $175 million as of March 31, 2026 compared with $509 million as of Dec. 31, 2025.
As of March 31, 2026, total debt and financial leases (excluding securitization debt) were $18.54 billion compared with $18.31 billion as of Dec. 31, 2025.
The net cash flow from operating activities was $0.71 billion during the first three months of 2026 compared with $1 billion in the prior-year period.
CMS' 2026 Guidance
The company reaffirmed its 2026 adjusted earnings guidance of $3.83-$3.90 per share. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3.87, higher than the midpoint of the company’s guided range.
CMS also reaffirmed its long-term adjusted EPS growth in the band of 6-8%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, CMS Energy has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, CMS Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).