On July 25, 2024, CMS Energy Corp (CMS, Financial) released its 8-K filing announcing its second-quarter earnings for 2024. CMS Energy, a Michigan-based energy holding company, operates through its regulated utility, Consumers Energy, and CMS Enterprises, which is involved in wholesale power generation and renewable energy.
Performance Overview
CMS Energy Corp (CMS, Financial) reported earnings per share (EPS) of $0.65 for Q2 2024, slightly down from $0.67 in Q2 2023. Adjusted EPS for the quarter was $0.66, compared to $0.75 in the same period last year. Despite this year-over-year decline, the company’s performance exceeded the analyst estimate of $0.62 per share.
For the first half of 2024, CMS Energy reported an EPS of $1.61, up from $1.36 in the first half of 2023. On an adjusted basis, the EPS was $1.63, compared to $1.45 in the previous year. The company attributed this improvement to constructive regulatory outcomes and higher weather-normalized sales.
Financial Achievements
CMS Energy reaffirmed its 2024 adjusted earnings guidance of $3.29 to $3.35 per share, with long-term adjusted EPS growth projected at 6 to 8 percent. This guidance underscores the company’s confidence in its strategic investments and operational efficiency.
“We are on track to deliver our full-year earnings guidance after a strong first half of the year prioritizing investments in our electric and gas systems to deliver value for customers,” said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Operating Revenue ($M) | 1,607 | 1,555 | 3,783 | 3,839 |
| Operating Income ($M) | 283 | 244 | 695 | 558 |
| Net Income ($M) | 198 | 198 | 485 | 402 |
| Diluted EPS ($) | 0.65 | 0.67 | 1.61 | 1.36 |
Balance Sheet and Cash Flow
As of June 30, 2024, CMS Energy reported total assets of $34.36 billion, up from $33.52 billion at the end of 2023. The company’s cash and cash equivalents increased significantly to $699 million from $227 million. Total liabilities and equity stood at $34.36 billion, reflecting a stable financial position.
Net cash provided by operating activities for the first half of 2024 was $1.66 billion, compared to $1.71 billion in the same period last year. Despite a decrease in net cash used in investing activities, the company managed to maintain a positive cash flow from operating and investing activities.
Analysis and Outlook
CMS Energy’s performance in the second quarter of 2024 highlights its resilience and strategic focus on regulatory outcomes and operational efficiency. The reaffirmation of its earnings guidance and long-term growth projections indicates strong confidence in its business model and future prospects.
Value investors may find CMS Energy’s consistent performance and strategic investments in electric and gas systems appealing. The company’s focus on clean energy transformation and infrastructure improvements positions it well for sustainable growth in the regulated utilities sector.
Explore the complete 8-K earnings release (here) from CMS Energy Corp for further details.
