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Brookfield Infrastructure's (BIP) Q1 Earnings Miss Estimates

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) posted first-quarter 2018 earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 86 cents by 51.2%. The company incurred a loss of 3 cents in the year-ago quarter.

Revenues

Brookfield Infrastructure reported revenues of $1,013 million, which beat the Zacks Consensus Estimate of $946 million by 7%. Revenues surged 54.4% year over year from $656 million.

Price, Consensus and EPS Surprise

Price, Consensus and EPS Surprise | Quote

Highlights

Direct operating costs in the reported quarter were $409 million, which inched up 19.2% from $343 million in the year-ago quarter.

Interest expenses rose 21.3% year over year to $114 million, from $94 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $333 million, up 27.58% from $261 million in the prior-year quarter.

Segment Details

Utilities: FFO in the segment was $169 million, up 69% year over year. The upside can be attributed to the consistent contributions from the Brazilian regulated gas transmission operations as well as rate base and upward inflation adjustments in other utility businesses.

Transport: The segment generated FFO of $137 million, up 11.38% from $123 million in the year-ago quarter. The upside was caused by higher tariffs as well as volumes in Brazilian rail and South American toll road businesses.

Energy: This segment generated FFO of $66 million, up 6.45% year over year. This increase can be attributed to contribution from new contracts, higher gas transport volumes and equity invested in North American natural gas transmission operations.

Communications Infrastructure: The segment generated FFO of $19 million, in line with the prior-year quarter’s level.

Corporate: This segment incurred a loss of $58 million in the reported quarter, wider than the loss of $43 million in the year-ago quarter.

Financial Update

As of Mar 31, 2018, Brookfield Infrastructure’s cash and cash equivalents were $890 million compared with $374 million of Dec 31, 2017.

Cash from operating activities was $466 million, up from $178 million in the year-ago period.

Brookfield Infrastructure announced that it has hiked the distribution payment by 8% to 47 cents per unit. The distribution is payable on June 29 to unitholders of record as of May 31.

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 Releases

FirstEnergy Corporation (FE - Free Report) reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2018 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.78 by 8.9%.

DTE Energy (DTE - Free Report) reported first-quarter 2018 operating earnings per share of $1.91, which beat the Zacks Consensus Estimate of $1.89 by 1.06%.

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