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Brookfield Infrastructure (BIP) Q1 Earnings Miss Estimates

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) posted first-quarter 2020 operating earnings of 13 cents per share, which missed the Zacks Consensus Estimate of 81 cents by 531%. The company had reported a loss of 5 cents in the year-ago quarter.

Revenues

Revenues in the quarter under review totaled $2,196 million, up 37.8% year over year from $1,593 million.

Highlights

Direct operating costs in the reported quarter totaled $1,239 million, up 57% from $798 million in the year-ago quarter.

Interest expenses rose 33% year over year to $282 million from $212 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $358 million, up from $351 million in the prior-year quarter. The upside can be attributed to organic growth of 6% and earnings associated with $1.6 billion of capital deployed during the past year.

Segment Details

Utilities: FFO in this segment amounted to $146 million, up 6.5% year over year.

Transport: The segment generated FFO of $120 million, down 13.6% from $139 million in the year-ago quarter.

Energy: The segment generated FFO of $115 million, up 7.4% year over year.

Data Infrastructure: The segment generated FFO of $42 million, up 50% from $28 million in the prior-year quarter.

Corporate: The segment incurred a loss of $65 million in the quarter, wider than a loss of $60 million reported in the year-ago quarter.

Financial Update

As of Mar 31, 2020, Brookfield Infrastructure’s cash and cash equivalents were $1,226 million compared with $827 million as of Dec 31, 2019.

Cash from operating activities was $722 million at the end of the first quarter of 2020, up from $561 million in the year-ago quarter.

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.

Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2020 adjusted earnings per share of 86 cents, which surpassed the Zacks Consensus Estimate of 77 cents by 11.7%.

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