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Brookfield Infrastructure (BIP) Q1 Earnings Miss Estimates

Zacks Equity Research

Brookfield Infrastructure Partners L.P. BIP incurred first-quarter 2019 loss of 5 cents per unit against the Zacks Consensus Estimate of earnings of 84 cents. In the prior-year quarter, earnings came in at 42 cents per unit. Notably, the quarterly results were hurt by the impact of foreign exchange.

Revenues

Revenues in the quarter under review totaled $1,593 million, which improved 57.2% year over year from $1,013 million.

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise | Brookfield Infrastructure Partners LP Quote

Highlights

Direct operating costs in the reported quarter were $798 million, up 95.1% from $409 million in the year-ago quarter.

Interest expenses rose 86% year over year to $212 million from $114 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $351 million, up from $333 million in the prior-year quarter. The upside can be attributed to strong performance by the Transport, Energy and Data Infrastructure segments.

Segment Details

Utilities: FFO at this segment was $137 million, down 18.9% year over year.

Transport: The segment generated FFO of $139 million, up from $137 million in the year-ago quarter.

Energy: The segment generated FFO of $107 million, up 62% year over year.

Data Infrastructure: The segment generated FFO of $28 million, up from $19 million in the prior-year quarter.

Corporate: This segment incurred a loss of $60 million in the quarter, wider than a loss of $58 million in the year-ago quarter.

Financial Update

As of Mar 31, 2019, Brookfield Infrastructure’s cash and cash equivalents were $720 million compared with $540 million of Dec 31, 2018.

Cash from operating activities was $561 million at the end first quarter, up from $466 million in the year-ago period.

Zacks Rank

Brookfield Infrastructure has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

DTE Energy Company DTE delivered first-quarter 2019 operating earnings per share of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc NEE reported first-quarter 2019 adjusted earnings of $2.20 per share, which outpaced the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation FE delivered first-quarter 2019 operating earnings of 67 cents per share, which surpassed the Zacks Consensus Estimate of 66 cents by 1.52%.

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