CMS Energy Q3 Earnings Beat Expectations Despite Lagging Behind S&P 500 Growth
CMS Energy Corporation (CMS) has reported impressive financial results for the third quarter, with operating revenue surging 15.9% year-over-year to $2 billion. This figure exceeded analysts' expectations by 11%.
The company's adjusted EPS also rose, reaching $0.93 in Q3, a 10.7% increase from the previous year and 8.1% ahead of estimates. CMS provides essential services to millions of customers, focusing on sustainability initiatives.
Despite these positive results, CMS's stock performance has lagged behind the broader stock market and relevant benchmarks. Over the past 52 weeks, CMS shares have gained 9.2%, trailing the S&P 500 Index's 12.6% rise. Similarly, on a year-to-date basis, CMS's stock is up 10.9%, compared to the S&P 500 Index's 14.6% return. It has also underperformed the Utilities Select Sector SPDR Fund (XLU) in both periods.
However, CMS's stock price reacted positively to the Q3 results, climbing 1.3% on Oct. 30. Looking ahead, analysts anticipate CMS Energy's EPS to grow 7.5% year over year to $3.59 for the current fiscal year.
CMS Energy Corporation, with a market cap of $22.5 billion, has revised its fiscal 2025 adjusted EPS guidance to a range of $3.56 to $3.60. Despite recent underperformance, the company's strong Q3 results and positive stock reaction indicate potential for future growth.
