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What Awaits Brookfield Business Partners (BBU) in Q4 Earnings?

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Brookfield Business Partners L.P. BBU will report fourth-quarter 2019 results on Feb 6, before the opening bell.

The company posted an earnings surprise of 52.1% in the third quarter of 2019. Its shares have gained 29.2% over the past year against no movement of the industry.

Q4 Expectations

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.97 per share, indicating year over year growth of 89.4%.

Strong segmental performance is expected to have positively impacted the bottom line in the quarter. The business services segment is likely to have benefited from solid performance of construction services and road fuel distribution operations. Healthscope and Ouro Verde acquisitions are also expected to have driven the segment’s bottom line.

The infrastructure services segment’s bottom line is likely to have benefited from continuous strong performance of Westinghouse’s plants in the United States and China, and Teekay Offshore’s increased ownership position.

Contribution from the acquisition of Clarios in 2019 is expected to have benefited the industrial segment’s bottom line.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Brookfield this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Brookfield has an Earnings ESP of 0.00% and a Zacks Rank #1.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this season:

Waste Management WM has an Earnings ESP of +4.19% and a Zacks Rank #2. The company is slated to report results on Feb 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fidelity National Information Services, Inc. FIS has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is slated to release results on Feb 13.

Global Payments Inc. (GPN - Free Report) has an Earnings ESP of +1.57% and a Zacks Rank #2. The company is slated to release results on Feb 12.

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