CMS Energy Corporation (NYSE:CMS) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in CMS Energy Corporation (NYSE:CMS) had a good week, as its shares rose 4.1% to close at US$68.70 following the release of its annual results. Results look mixed - while revenue fell marginally short of analyst estimates at US$7.5b, statutory earnings were in line with expectations, at US$3.33 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for CMS Energy

Taking into account the latest results, the current consensus from CMS Energy's twelve analysts is for revenues of US$8.07b in 2025. This would reflect a reasonable 7.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.1% to US$3.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.12b and earnings per share (EPS) of US$3.58 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$71.62, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on CMS Energy, with the most bullish analyst valuing it at US$78.00 and the most bearish at US$59.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that CMS Energy's rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CMS Energy to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$71.62, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CMS Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CMS Energy analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with CMS Energy (including 1 which is a bit concerning) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.