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Brookfield Infrastructure (BIP) Q2 Earnings Miss Estimates

Zacks Equity Research

Brookfield Infrastructure Partners L.P. BIP posted second-quarter 2019 operating earnings of 12 cents per unit, which lagged the Zacks Consensus Estimate of 83 cents by 85.5%.  The bottom line declined 42.8% from the prior-year quarter’s figure of 21 cents.

Revenues

Revenues in the quarter under review totalled $1,685 million, which improved 61.4% year over year from $1,044 million.

Highlights

Direct operating costs in the reported quarter were $840 million, up 79.8% from $467 million in the year-ago quarter.

Interest expenses rose 92.8% year over year to $241 million from $125 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $337 million, up from $294 million in the prior-year quarter. The upside can be attributed to strong performance in the Utilities, Energy and Data Infrastructure segments.

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise

 

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise

Brookfield Infrastructure Partners LP price-consensus-eps-surprise-chart | Brookfield Infrastructure Partners LP Quote

 

Segment Details

Utilities: FFO in this segment amounted to $143 million, up 2.8% year over year.

Transport: The segment generated FFO of $135 million, up from $133 million in the year-ago quarter.

Energy: The segment generated FFO of $96 million, up 77.8% year over year.

Data Infrastructure: The segment generated FFO of $30 million, up from $19 million in the prior-year quarter.

Corporate: The segment incurred a loss of $67 million in the quarter, wider than a loss of $51 million in the year-ago quarter.

Financial Update

As of Jun 30, 2019, Brookfield Infrastructure’s cash and cash equivalents were $715 million compared with $540 million of Dec 31, 2018.

Cash from operating activities was $580 million at the end of second quarter, up from $183 million in the year-ago quarter.

Zacks Rank

Brookfield Infrastructure has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

American Electric Power Co., Inc AEP reported second-quarter 2019 adjusted earnings per share (EPS) of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

CMS Energy Corp. CMS reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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