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Brookfield Infrastructure (BIP) Q3 Earnings & Revenues Lag

WEC XEL NEE BIP

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Brookfield Infrastructure Partners L.P.'s (BIP - Free Report) earnings of 16 cents per unit in the third quarter of 2016 lagged the Zacks Consensus Estimate of 67 cents by a wide 76.1%. Reported earnings also tanked 48.4% from the year-ago tally.

 

 

Revenues

Brookfield Infrastructure posted revenues of $522 million during the quarter, lagging the Zacks Consensus Estimate of $656 million by 20.4%.

Revenues in the reported quarter were, however, 11.5% higher than the prior-year quarter figure of $468 million.

Highlights of the release

Direct operating costs during the quarter were $267 million, up 34.2% from $199 million in the year-ago quarter.

Interest expenses in the reported quarter were up 8.9% to $98 million.

Fund flow from operations (FFO) in the reported quarter was $235 million, up 11.9% from $210 million in the year-ago period.

BROOKFIELD INFR Price, Consensus and EPS Surprise

 

BROOKFIELD INFR Price, Consensus and EPS Surprise | BROOKFIELD INFR Quote

Quarterly Segment Highlights

Utilities: The segment witnessed 3% year-over-year growth in third-quarter 2016 FFO to $102 million from $99 million owing to robust connection activity at the UK regulated distribution operation, inflation indexation across operations and the commissioning of capital into the rate base over the last one year.

Transport: The segment generated FFO of $112 million, up 8.7% from $103 million in the year-ago quarter on account of higher tariffs and higher volumes across a number of operations. Contribution from incremental interest in the company’s Brazilian toll road business, new toll road investments in India and Peru and partial contribution from the recently closed Australian Ports business also aided FFO.

Energy: The partnership saw a 110.5% year-over-year surge in third-quarter 2016 FFO to $40 million mainly on the back of higher contribution from increased ownership and reduced leverage in the company’s North American natural gas transmission business and contribution from the newly acquired gas storage business in North America.

Communications Infrastructure: The segment generated FFO of $19 million in the third quarter, compared to $20 million a year ago.

Corporate and Other: The segment incurred a loss of $38 million in the reported quarter, wider than the prior-year loss of $31 million.

Financial Update

As of Sep 30, 2016, Brookfield Infrastructure’s cash and cash equivalents were $441 million, compared with $199 million at 2015 end.

Cash from operating activities was $343 million in the third quarter of 2016, up from $181 million in the year-ago quarter.

Peer Releases

NextEra Energy, Inc.(NEE - Free Report) reported third-quarter 2016 adjusted earnings of $1.74 per share, outpacing the Zacks Consensus Estimate of $1.65 by 5.5%.

WEC Energy Group (WEC - Free Report) reported third-quarter 2016 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 60 cents by 15%.

Xcel Energy Inc. (XEL - Free Report) recorded third-quarter operating earnings of 90 cents per share, outpacing the Zacks Consensus Estimate of 87 cents by 3.5%.

Zacks Rank

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

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