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Brookfield Infrastructure (BIP) Q2 Earnings: What's in Store?

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) will release second-quarter 2017 financial results on Aug 3, before market opens. Last quarter, the partnership’s earnings were in line with the estimates.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

During the month of April, Brookfield Infrastructure completed the acquisition of an interest in Nova Transportadora do Sudeste S.A. (“NTS”), a large natural gas transmission business in Brazil. This can boost the company's performance in the second quarter.

Additionally, the company recorded more than $2 billion of projects in backlog. This will be accretive to the company's earnings. Further, the company is looking forward to expansion via new organic projects.

 

Earnings Whispers

Our proven model does not conclusively show that Brookfield Infrastructure is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: The Company’s Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 80 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Though Brookfield Infrastructure’s Zacks Rank #3 increases the predictive power of ESP, the 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies you may want to consider from the Zacks categorized Utility sector as our proven model shows that they have the right combination of elements to post an earnings beat this quarter.

Pattern Energy Group Inc. has an Earnings ESP of +23.08% and carries a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

The AES Corporation (AES - Free Report) has an Earnings ESP of +20.00% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8.

Allete, Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8.

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