CMS Energy Q2 revenue misses estimates; maintains long-term adjusted EPS growth target

Overview

• US energy provider's Q2 revenue declined and missed analyst expectations

• Adjusted EPS for Q2 slightly beat analyst expectations

• Company to exit non-utility renewables development after NorthStar Clean Energy review

Outlook

• CMS Energy reaffirms 2026 adjusted EPS guidance of $3.83 to $3.90

• Company introduces 2027 adjusted EPS guidance of $4.08 to $4.17

• CMS Energy maintains long-term adjusted EPS growth target of 6-8%

Result Drivers

• STRATEGIC SHIFT - Co said exit from non-utility renewables development will simplify business and reduce financing needs

Company press release: ID:nPn8S3yqWa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "buy"

• Wall Street's median 12-month price target for CMS Energy Corp is $81.00, about 9.1% above its July 27 closing price of $74.27

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 28 - CenterPoint Energy Q2 profit beats estimates, raises capital plan

• July 26 - US Energy Department orders more power resources for western electric grid

• July 27 - Expand Energy to beef up gas marketing business with $1.25 billion Twin Eagle deal

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)