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Brookfield Infrastructure (BIP) Misses Q2 Earnings Estimates

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) posted second-quarter 2018 earnings of 21 cents per unit, missing the Zacks Consensus Estimate of 76 cents by 72.4%. The company had incurred a loss of 6 cents in the year-ago quarter.

Revenues

Brookfield Infrastructure reported revenues of $1,044 million, which beat the Zacks Consensus Estimate of $833 million by 25.3%. Revenues improved 11.7% year over year from $934 million.

Highlights

Direct operating costs in the reported quarter were $467 million, which rose 25.2% from $373 million in the year-ago quarter.

Interest expenses rose 16.8% year over year to $125 million, from $107 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $294 million, down from $295 million in the prior-year quarter.

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise

 

Segment Details

Utilities: FFO in the segment was $139 million, down 17.3% year over year. The downside was caused by the impact of the sale of an electricity transmission business in Chile, which was closed during the first quarter, the recent completion of debt financing at Brazilian regulated gas transmission business and the impact of foreign exchange.

Transport: The segment generated FFO of $133 million, down from $134 million in the year-ago quarter. The downside was caused by the impact of foreign exchange and a nation-wide truck driver strike in Brazil.

Energy: The segment generated FFO of $54 million, up 25.6% year over year. This increase can be attributed to the higher contribution of North American gas transmission business due to increased gas transport volumes and lower leverage levels.

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

Corporate: This segment incurred a loss of $51 million in the reported quarter, narrower than a loss of $69 million in the year-ago quarter.

Financial Update

As of Jun 30, 2018, Brookfield Infrastructure’s cash and cash equivalents were $782 million compared with $374 million of Dec 31, 2017.

Cash from operating activities was $183 million at the end of three months ended in Jun 30, 2018, down from $419 million in the year-ago period.

Zacks Rank

Brookfield Infrastructure has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share (EPS) of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted EPS of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

NextEra Energy (NEE - Free Report) reported second-quarter 2018 adjusted earnings of $2.11, beating the Zacks Consensus Estimate of $2.07 by 1.93%

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