Brookfield Infrastructure Partners (NYSE:BIP) Releases Earnings Results, Misses Expectations By $0.94 EPS

Brookfield Infrastructure Partners (NYSE:BIP) (TSE:BIP.UN) released its earnings results on Friday. The utilities provider reported ($0.04) EPS for the quarter, missing the consensus estimate of $0.90 by ($0.94), FiscalAI reports. The business had revenue of $6.56 billion for the quarter, compared to analyst estimates of $2.20 billion. Brookfield Infrastructure Partners had a return on equity of 1.55% and a net margin of 1.98%. The company’s revenue for the quarter was up 9.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.83 EPS.

Here are the key takeaways from Brookfield Infrastructure Partners’ conference call:

• Brookfield reported FFO of $717 million, or $0.91 per unit, and said it achieved its 10% FFO-per-unit growth target for a third consecutive quarter. Growth was supported by organic gains and newly commissioned projects; data FFO rose 25%, midstream 14%, and transport 10% year over year.
• The company is expanding investments in AI infrastructure, including a NAVER partnership to develop more than 200 MW of compute capacity. Brookfield expects to invest about $100 million of equity, with contracted cash flows designed to provide a return of and recovery of invested capital over the initial contract term; deployment is expected to begin in 2027.
• Brookfield has secured nearly $1.5 billion in asset-sale proceeds year to date and is nearing binding offers on additional sales that could generate more than $1 billion before year-end. It also reported about $3.2 billion of corporate liquidity and said more than 90% of debt, excluding Brazil, is fixed rate.
• The corporate simplification has received required approvals and is expected to close November 19. Management expects improved trading liquidity and a broader investor base, though it said potential index-related benefits may take three to nine months to emerge.
• Western Australia has introduced legislation enabling a potential government buyback of the Arc Infrastructure freight network. Brookfield said discussions with the government are ongoing but did not provide details on possible outcomes.

Brookfield Infrastructure Partners Trading Down 0.5%

NYSE:BIP opened at $39.46 on Wednesday. The company has a current ratio of 0.34, a quick ratio of 0.84 and a debt-to-equity ratio of 1.77. The company has a market cap of $18.06 billion, a PE ratio of 11.11 and a beta of 1.06. Brookfield Infrastructure Partners has a 12 month low of $33.21 and a 12 month high of $44.03. The company has a 50 day simple moving average of $36.72 and a two-hundred day simple moving average of $37.60.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. BMO Capital Markets boosted their price objective on Brookfield Infrastructure Partners from $44.00 to $47.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Canadian Imperial Bank of Commerce set a $44.00 price objective on shares of Brookfield Infrastructure Partners and gave the company an “outperformer” rating in a research note on Thursday, October 22nd. Weiss Ratings reissued a “hold (c+)” rating on shares of Brookfield Infrastructure Partners in a report on Tuesday, November 3rd. Citigroup reissued a “neutral” rating and set a $41.00 price objective (up from $37.00) on shares of Brookfield Infrastructure Partners in a research note on Monday, August 3rd. Finally, Morgan Stanley reduced their target price on Brookfield Infrastructure Partners from $50.00 to $48.00 and set an “overweight” rating for the company in a research report on Tuesday, October 13th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $45.75.

Brookfield Infrastructure Partners Company Profile

Brookfield Infrastructure Partners L.P. is a global owner and operator of essential infrastructure businesses. The partnership invests in assets that support the movement and delivery of energy, goods, data and other services. Its operations span utilities, transport, midstream and data infrastructure. These businesses include electricity and natural gas networks, railways, ports and toll roads, natural gas pipelines and storage, and communications infrastructure such as fiber networks and data centers.