CMS Energy Q2 revenue misses estimates; maintains long-term adjusted EPS growth target
CMS•Q2 results and revenue miss
CMS Energy said second-quarter revenue declined and missed analyst expectations, while adjusted EPS slightly beat estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Miss | $1.83 bln | $1.91 bln (6 Analysts) |
| Q2 Adjusted EPS | Beat | $0.37 | $0.36 (12 Analysts) |
| Q2 EPS | $0.37 | ||
| Q2 Net Income | $96 mln |
Strategic shift in renewables
CMS said it will exit non-utility renewables development after a NorthStar Clean Energy review.
The company said the move will simplify the business and reduce financing needs.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy," with 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 versus a P/E of 20 three months ago.
Guidance and long-term outlook
CMS Energy reaffirmed its 2026 adjusted EPS guidance of $3.83 to $3.90 and introduced 2027 adjusted EPS guidance of $4.08 to $4.17.
