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Brookfield Infrastructure (BIP) Q3 Earnings Miss Estimates

Zacks Equity Research

Brookfield Infrastructure Partners L.P. BIP posted third-quarter 2019 operating earnings of 7 cents per share, which missed the Zacks Consensus Estimate of 81 cents by 91.3%. The company had reported a loss of 10 cents in the year-ago quarter.

Revenues

Revenues in the quarter under review totaled $1,664 million, up 42.6% year over year from $1,167 million.

Highlights

Direct operating costs in the reported quarter totaled $850 million, up 41% from $603 million in the year-ago quarter.

Interest expenses rose 63.6% year over year to $229 million from $140 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $338 million, up from $278 million in the prior-year quarter. The upside can be attributed to strong performance by the Utilities, Energy, Transport 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 $145 million, up 11.5% year over year.

Transport: The segment generated FFO of $128 million, up 7.6% from $119 million in the year-ago quarter.

Energy: The segment generated FFO of $100 million, up 69.5% year over year.

Data Infrastructure: The segment generated FFO of $36 million, up 89.5% from $19 million in the prior-year quarter.

Corporate: The segment incurred a loss of $71 million in the quarter, wider than a loss of $49 million reported in the year-ago quarter.

Financial Update

As of Sep 30, 2019, Brookfield Infrastructure’s cash and cash equivalents were $677 million compared with $540 million of Dec 31, 2018.

Cash from operating activities was $589 million at the end of the third quarter, up from $337 million in the year-ago quarter.

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.

Utility Releases

American Electric Power AEP reported third-quarter 2019 earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.33 by 9.8%.

NextEra Energy NEE reported third-quarter 2019 earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%.

Avangrid AGR reported third-quarter 2019 earnings of 40 cents, which missed the Zacks Consensus Estimate of 51 cents by 21.6%.

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