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Integrated energy company CMS Energy $CMS reported lower than expected 2Q17 earnings before the market open Friday, results beat on higher operating income.  CMS reiterated that the company continued it's investment in electric and renewable energy infrastructure to reduce system risk and increase capacity.

 

Earnings:  Earnings per share of 33 cents missed consensus estimate of 41 cents, down from the year-ago figure of 45 cents. Revenues $1,449 million, beating the consensus estimate of $1,355.5 million, and a year-over-year $1,371 million.

The company’s operating expenses increased 10.2% to $1,208 million during the quarter.

Reaction: CMS Energy Corporation NYSE: 46.28 -.61 (-1.30%)

Cash and Debt

CMS Energy had cash and cash equivalents of $418 million as of Jun 30, 2017, up from $235 million as of Dec 31, 2016. As of Jun 30, 2017, total debt, capital leases and financing obligations stood at $9,715 million, up from $9,706 million as of Dec 31, 2016.

At the end of the second quarter, cash from operating activities was $1,119 million compared with $1,101 million in the year-ago period.

Guidance

CMS Energy reaffirmed its 2017 adjusted earnings per share guidance in the range of $2.14–$2.18. Adjusted earnings are still expected to grow year over year in the range of 6–8% in 2017.

Last quarter $CMS announced that on the investment recovery mechanism (IRM) the appetite in the state is that as $CMS works with the commission further on multi-year plans. They said it makes it a lot easier for the commission to agree to a multi-year IRM. $CMS has one in its gas structure today & its enhanced infrastructure replacement program is about $75MM annual program. 

Source: CMS

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