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Brookfield Infrastructure (BIP) Q3 Earnings Miss Estimates

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) posted third-quarter 2018 loss of 71 cents per unit, missing  the Zacks Consensus Estimate of earnings of 72 cents by 1.39%.

Revenues

Revenues of $1,167 million beat the Zacks Consensus Estimate of $795 million by 46.8%. Revenues also improved 21.4% year over year from $961 million.

Highlights

Direct operating costs in the reported quarter were $603 million, up 53% from $394 million a year ago.

Interest expenses rose 22.8% year over year to $140 million from $114 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $278 million, down from $301 million in the prior-year quarter.

Segment Details

Utilities: FFO at the segment was $130 million, down 23.5% year over year. The downside was caused by the impact of the recent completion of debt financing at Brazilian regulated gas transmission business and the impact of foreign exchange.

Transport: The segment generated FFO of $119 million, down from $136 million in the year-ago quarter. The downside was because of lower volumes from minerals customers and due to the state concessions in  its Brazilian toll road business.

Energy: The segment generated FFO of $59 million, up 22.9% year over year. This increase can be attributed to higher transport volumes on strong gas production growth across North America.

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

Corporate: This segment incurred a loss of $49 million in the reported quarter, narrower than a loss of $72 million in the year-ago quarter.

Financial Update

As of Sep 30, 2018, Brookfield Infrastructure’s cash and cash equivalents were $1,144 million compared with $374 million of Dec 31, 2017.

Cash from operating activities was $337 million at the end of three months ended in Sep 30, 2018, down from $375 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

NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

DTE Energy Company (DTE - Free Report) posted third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

FirstEnergy Corp. (FE - Free Report) reported third-quarter 2018 operating earnings of 80 cents per share, beating the Zacks Consensus Estimate of 73 cents by 9.59%.

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