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Brookfield Infrastructure's (BIP) Earnings Preview for Q2

Zacks Equity Research

Brookfield Infrastructure Partners L.P. BIP is set to release second-quarter 2019 results on Aug 2, before market opens. In the last reported quarter, the company incurred a loss of 5 cents against the Zacks Consensus Estimate of earnings of 84 cents.

Let’s see how things are placed ahead of the upcoming quarterly announcement.

Factors to Consider

The partnership’s build-to-suit program continues to grow as more than 300 telecommunication towers were built in the past 12 months. We expect this to boost Data Infrastructure segment’s organic growth in the second quarter as well.

Acquired North American businesses and Gulf Coast project expansion are expected to benefit Brookfield Infrastructure’sresults in the quarter to be reported.

The partnership aims to expand through acquisition of higher growth businesses. Its acquisitions since 2018 are likely to make a positive impact on second-quarter results.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter earnings is pegged at 83 cents, which indicates year-over-year rise of 295.24%.

Brookfield Infrastructure Partners LP Price and EPS Surprise

 

Brookfield Infrastructure Partners LP Price and EPS Surprise

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

 

Earnings Whispers

Our proven model does not show that Brookfield Infrastructure is likely to beat estimates in the upcoming quarterly results. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The partnership carries a Zacks Rank #3, which when combined with -1.82% ESP makes estimates beat uncertain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Stocks to Consider

Investors can consider some stocks from the same industry, which have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corp. ETR has an Earnings ESP of +1.40% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results on Jul 31.

Black Hills Corporation BKH has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is likely to report second-quarter 2019 results on Aug 5.

The Southern Company SO has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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Black Hills Corporation (BKH) : Free Stock Analysis Report
 
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