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CMS Energy shares lag the S&P 500 amid storm and cost pressures
CMS shares are down 1.2% over the past year versus about a 20.1% gain for the S&P 500, and the company cited weather related headwinds and higher costs as key factors.
CMS Energy, a Jackson, Michigan based electricity and natural gas utility, has underperformed the broader market over the past year, despite a smaller year to date gain versus the S&P 500, according to Yahoo Finance.
The article attributes CMS' lag to weather related operational headwinds, elevated storm restoration costs, and a temporary earnings contraction that pressured valuation, including a sharp quarterly drop in net income and operating margins tied to mid summer storm restorations.
Higher debt service costs and execution risks associated with restructuring its non utility renewables business also weighed on investor sentiment, even as management pivoted capital toward its core regulated utility operations and reaffirmed full year guidance, the outlet said.
On Jul. 28, CMS shares closed up marginally after reporting Q2 results, with EPS of $0.37 matching expectations, while revenue of $1.8 billion came in below Wall Street forecasts of $1.9 billion. CMS expects full year EPS between $3.83 and $3.90.
Latest closeNat gas $2.715 ▼0.4%|S&P 500 7,785.76 ▼0.2%