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Brookfield Infrastructure (BIP) Q4 Earnings Miss Estimates

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Brookfield Infrastructure Partners L.P. BIP incurred fourth-quarter 2019 loss of 7 cents per unit against the Zacks Consensus Estimate of earnings of 84 cents. The company had reported earnings of 6 cents in the year-ago quarter.

In 2019, the partnership delivered earnings of 7 cents per unit compared with 59 cents in 2018. However, prior-year quarter’s results include a gain on the sale of an electricity transmission business. On a comparable basis, net income increased 16% from the year-ago quarter’s figure. Net income for the year benefited from strong organic growth across operations and contributions from recent acquisitions.

Revenues

Revenues in the quarter under review totaled $1,655 million, up 15.8% year over year from $1,428 million.

In 2019, the partnership reported revenues of $6,597 million compared with $4,652 million in 2018.

 

Highlights

Direct operating costs in the reported quarter amounted to $907 million, up 24.4% from $729 million in the year-ago quarter.

Interest expenses rose 26.1% year over year to $222 million from $176 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $358 million, up from $326 million in the prior-year quarter.

Segment Details

Utilities: FFO in the segment was $152 million, up 10.1% year over year.

Transport: The segment generated FFO of $128 million, down from $129 million in the year-ago quarter.

Energy: The segment generated FFO of $109 million, up 21.1% year over year.

Data Infrastructure: The segment generated FFO of $42 million, up from $20 million in the prior-year quarter.

Corporate: This segment incurred a loss of $73 million in the quarter, wider than a loss of $51 million in the year-ago quarter.

Financial Update

As of Dec 31, 2019, Brookfield Infrastructure’s cash and cash equivalents were $827 million compared with $540 million of Dec 31, 2018.

Cash from operating activities was $413 million at the end of three months ended in Dec 31, 2019, up from $376 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

Xcel Energy XEL posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corporation CMS reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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