CMS Energy Announces Strong 2023 Results for the 21st Consecutive Year and Raises 2024 Adjusted EPS Guidance

Rhea-AI Summary

CMS Energy reported a rise in earnings per share for 2023, with a significant increase in adjusted earnings per share and an 11 cent increase in annual dividend for 2024. The company also raised its 2024 adjusted earnings guidance, indicating positive financial performance and shareholder returns.

Insights

Financial Analyst

The reported increase in earnings per share (EPS) from $2.85 to $3.01 and the adjusted EPS from $2.89 to $3.11 for CMS Energy, indicates a positive performance trajectory. This uptick in profitability is a signal of operational efficiency and could potentially attract investor interest. The dividend increase to $2.06 per share reflects a robust financial position and a commitment to returning value to shareholders, which is often viewed favorably in the market.

Moreover, the upward revision of the 2024 adjusted earnings guidance suggests that management has confidence in the company's future performance. This could be due to strategic initiatives, cost management, or favorable market conditions. Investors often look for such forward-looking statements as a basis for their expectations about the company's future earnings potential.

Energy Sector Analyst

Within the energy sector, CMS Energy's announcement is significant. The company's performance must be contextualized within the broader industry trends, such as regulatory changes, commodity price fluctuations and the transition to renewable energy sources. The ability of CMS Energy to increase its EPS in this environment may indicate a competitive edge or successful adaptation to these trends.

From a sector perspective, the dividend increase aligns with the typically stable and predictable cash flows of utility companies, which are known for their dividend-paying capabilities. However, it is crucial to monitor if this increase is sustainable given the capital-intensive nature of the energy sector and the ongoing investments in infrastructure and clean energy.

Market Research Analyst

The announcement's impact on the stock market could be multifaceted. Historically, utility stocks like CMS Energy are considered defensive investments due to their stable earnings and dividends. In times of market volatility, such stocks might outperform the broader market. Therefore, the increase in dividends could make CMS Energy a more attractive option for income-focused investors.

However, it's essential to analyze investor sentiment and market conditions, as these factors will ultimately influence the stock's performance. Additionally, the raised guidance for 2024 adjusted earnings should be benchmarked against competitors and market expectations to fully assess its significance.

JACKSON, Mich., Feb. 1, 2024 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $3.01 for 2023, compared to $2.85 per share for 2022. The company's adjusted earnings per share for 2023 were $3.11, compared to $2.89 per share for 2022. CMS Energy also announced the increase of its annual dividend by 11 cents per share to $2.06 for 2024.

CMS Energy raised its 2024 adjusted earnings guidance to $3.29 to $3.35 per share from $3.27 to $3.33 per share (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

"In a challenging year with unfavorable weather and significant storms, we responded and delivered for our customers, communities and investors," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "I'm proud of the team's efforts in 2023 and our success positions CMS Energy well for the long-term."

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2023 year-end results and provide a business and financial outlook on Thursday, February 1 at 9:30 a.m. (EST). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments recognized in net income related to NorthStar Clean Energy's interest expense, or other items. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings. 

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings. 

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

For more information on CMS Energy, please visit our website at cmsenergy.com.
To sign up for email alert notifications, please visit the Investor Relations section of our website.

 

CMS ENERGY CORPORATION Consolidated Statements of Income (Unaudited)
	In Millions, Except Per Share Amounts
	Three Months Ended						Twelve Months Ended
	12/31/23			12/31/22			12/31/23			12/31/22
Operating revenue	$	1,950		$	2,278		$	7,462		$	8,596
Operating expenses		1,544			2,007			6,227			7,372
Operating Income		406			271			1,235			1,224
Other income		83			52			362			197
Interest charges		172			139			643			519
Income Before Income Taxes		317			184			954			902
Income tax expense		66			21			147			93
Income From Continuing Operations		251			163			807			809
Income from discontinued operations, net of tax		-			-			1			4
Net Income		251			163			808			813
Loss attributable to noncontrolling interests		(58)			(8)			(79)			(24)
Net Income Attributable to CMS Energy		309			171			887			837
Preferred stock dividends		3			3			10			10
Net Income Available to Common Stockholders	$	306		$	168		$	877		$	827
Diluted Earnings Per Average Common Share
Income from continuing operations per average common share     available to common stockholders
	$	1.05		$	0.58		$	3.01		$	2.84
Income from discontinued operations per average common share     available to common stockholders
		-			-			-			0.01
Diluted earnings per average common share	$	1.05		$	0.58		$	3.01		$	2.85

 

CMS ENERGY CORPORATION Summarized Consolidated Balance Sheets (Unaudited)
		In Millions
		As of
		12/31/23				12/31/22
Assets
Current assets
Cash and cash equivalents			$	227			$	164
Restricted cash and cash equivalents				21				18
Other current assets				2,591				3,251
Total current assets				2,839				3,433
Non-current assets
Plant, property, and equipment				25,072				22,713
Other non-current assets				5,606				5,207
Total Assets			$	33,517			$	31,353
Liabilities and Equity
Current liabilities (1)			$	1,822			$	1,866
Non-current liabilities (1)				7,927				7,583
Capitalization
Debt and finance leases (excluding securitization debt) (2)				14,856				14,139
Preferred stock and securities				224				224
Noncontrolling interests				581				580
Common stockholders' equity				7,320				6,791
Total capitalization (excluding securitization debt)				22,981				21,734
Securitization debt (2)				787				170
Total Liabilities and Equity			$	33,517			$	31,353
(1)     Excludes debt and finance leases.
(2)     Includes current and non-current portions.
CMS ENERGY CORPORATION
Summarized Consolidated Statements of Cash Flows
(Unaudited)
		In Millions
		Twelve Months Ended
		12/31/23				12/31/22
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts			$	182			$	476
Net cash provided by operating activities				2,309				855
Net cash used in investing activities				(3,386)				(2,476)
Cash flows from operating and investing activities				(1,077)				(1,621)
Net cash provided by financing activities				1,143				1,327
Total Cash Flows			$	66			$	(294)
End of Period Cash and Cash Equivalents, Including Restricted Amounts			$	248			$	182

 

CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited)
		In Millions, Except Per Share Amounts
		Three Months Ended						Twelve Months Ended
		12/31/23			12/31/22			12/31/23			12/31/22
Net Income Available to Common Stockholders		$	306		$	168		$	877		$	827
Reconciling items:
Disposal of discontinued operations (gain) loss			*			-			(1)			(5)
Tax impact			(*)			-			*			1
Other exclusions from adjusted earnings**			3			9			9			8
Tax impact			(1)			(2)			(3)			(2)
Voluntary separation program			*			1			33			12
Tax impact			(*)			(*)			(8)			(3)
Adjusted net income – non-GAAP		$	308		$	176		$	907		$	838
Average Common Shares Outstanding - Diluted			292.7			290.1			291.7			290.0
Diluted Earnings Per Average Common Share
Reported net income per share		$	1.05		$	0.58		$	3.01		$	2.85
Reconciling items:
Disposal of discontinued operations (gain) loss			*			-			(*)			(0.01)
Tax impact			(*)			-			*			*
Other exclusions from adjusted earnings**			0.01			0.03			0.03			0.03
Tax impact			(0.01)			(0.01)			(0.01)			(0.01)
Voluntary separation program			*			*			0.11			0.04
Tax impact			(*)			(*)			(0.03)			(0.01)
Adjusted net income per share – non-GAAP		$	1.05		$	0.60		$	3.11		$	2.89

*

Less than $0.5 million or $0.01 per share.

**

Includes restructuring costs, business optimization initiative, and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors.  Internally, the Company uses adjusted earnings to measure and assess performance.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.

 

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SOURCE CMS Energy

FAQ

What were CMS Energy's earnings per share for 2023?

CMS Energy reported earnings per share of $3.01 for 2023.

What was the increase in annual dividend for CMS Energy for 2024?

CMS Energy increased its annual dividend by 11 cents per share to $2.06 for 2024.

What was the adjusted earnings per share for CMS Energy for 2023?

CMS Energy's adjusted earnings per share for 2023 were $3.11.

What is CMS Energy's adjusted earnings guidance for 2024?

CMS Energy raised its 2024 adjusted earnings guidance to $3.29 to $3.35 per share from $3.27 to $3.33 per share.