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Will Brookfield Infrastructure (BIP) Q4 Earnings Disappoint?

Brookfield Infrastructure Partners L.P. BIP is scheduled to report fourth-quarter 2015 results before the opening bell on Feb 3. Brookfield Infrastructure’s earnings last quarter were 1.11% higher than expected. Let’s see how things are holding up for the fourth quarter.

Factors to Consider

Brookfield Infrastructure Partners’ results in the final quarter could be adversely impacted by a stronger dollar, like it did in the third quarter by $23 million.

Brookfield Infrastructure aims to create a globally diversified asset portfolio that will assure sustainable returns for its unit holders. The partnership is working toward expanding its operations globally through acquisitions and making strategic investments in Australia and India.

Earnings Whispers?

Our proven model does not conclusively show that Brookfield Infrastructure will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 92 cents per share.

Zacks Rank: Brookfield Infrastructure’s Zacks Rank #4 when combined with a 0.00% ESP makes an earnings beat unlikely this quarter.

As it is, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

We have some companies tied to the electric power industry worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter.

SCANA Corp. SCG has an earnings ESP of +2.5% and a Zacks Rank #2.

PPL Corporation PPL has an earnings ESP of +6.98% and a Zacks Rank #3.

NRG Energy, Inc. NRG has an earnings ESP of +26.2% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
BROOKFIELD INFR (BIP): Free Stock Analysis Report
 
SCANA CORP (SCG): Free Stock Analysis Report
 
PPL CORP (PPL): Free Stock Analysis Report
 
NRG ENERGY INC (NRG): Free Stock Analysis Report
 
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Zacks Investment Research

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