CMS Energy Corp. reported a higher fourth-quarter profit that exceeded market estimates, leading to a surge in the company's fiscal 2024 adjusted earnings forecast and a dividend hike. Consequently, the shares of CMS Energy Corp. appreciated roughly 6 percent, trading at $60.62 in the NYSE's pre-market session.
For fiscal 2024, the firm raised its outlook for adjusted earnings, now expecting to earn between $3.29 and $3.35 per share, compared to the earlier prediction of earning between $3.27 and $3.33 per share. In 2023, the adjusted earnings per share stood at $3.11. On average, market analysts forecast the company's earnings to be $3.34 per share, according to data gathered by Thomson Reuters. Notably, analysts' predictions usually exclude extraordinary items.
Also, the company reiterated its long-term adjusted earnings per share growth outlook of 6-8 percent, voicing high confidence at the upper end of this prediction. Alongside this, the firm's Board of Directors has agreed to raise the company’s quarterly dividend from 48.75 cents to 51.50 cents per share. This increased dividend for the first quarter will be paid on February 29, to those who are shareholders of record as of February 12.
In addition, CMS Energy announced an annual dividend increase of 11 cents per share, taking the annual dividend for 2024 to $2.06. Commenting on these developments, Garrick Rochow, president and the chief executive officer of CMS Energy, said that the decision to raise the annual dividend to $2.06 per share reflects the successful implementation of the company's strategy.
