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Brookfield Infrastructure (BIP) Q2 Earnings Miss Estimates

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) posted second-quarter 2019 operating earnings of 12 cents per unit, which lagged the Zacks Consensus Estimate of 83 cents by 85.5%.  The bottom line declined 42.8% from the prior-year quarter’s figure of 21 cents.

Revenues

Revenues in the quarter under review totalled $1,685 million, which improved 61.4% year over year from $1,044 million.

Highlights

Direct operating costs in the reported quarter were $840 million, up 79.8% from $467 million in the year-ago quarter.

Interest expenses rose 92.8% year over year to $241 million from $125 million in the prior-year quarter.

Fund flow from operations (FFO) in the reported quarter was $337 million, up from $294 million in the prior-year quarter. The upside can be attributed to strong performance in the Utilities, Energy and Data Infrastructure segments.

 

Segment Details

Utilities: FFO in this segment amounted to $143 million, up 2.8% year over year.

Transport: The segment generated FFO of $135 million, up from $133 million in the year-ago quarter.

Energy: The segment generated FFO of $96 million, up 77.8% year over year.

Data Infrastructure: The segment generated FFO of $30 million, up from $19 million in the prior-year quarter.

Corporate: The segment incurred a loss of $67 million in the quarter, wider than a loss of $51 million in the year-ago quarter.

Financial Update

As of Jun 30, 2019, Brookfield Infrastructure’s cash and cash equivalents were $715 million compared with $540 million of Dec 31, 2018.

Cash from operating activities was $580 million at the end of second quarter, up from $183 million in the year-ago quarter.

Zacks Rank

Brookfield Infrastructure has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

American Electric Power Co., Inc (AEP - Free Report) reported second-quarter 2019 adjusted earnings per share (EPS) of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

CMS Energy Corp. (CMS - Free Report) reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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