Brookfield Infrastructure Partners L.P. BIP is scheduled to report third-quarter 2016 results before the opening bell on Nov 4. Last quarter, this utility electric power company reported a negative earnings surprise of 2.90%. Let’s see how things are holding up for the third quarter.
Why a Likely Positive Surprise?
Our proven model shows that Brookfield Infrastructure Partners is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates and Brookfield Infrastructure Partners has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 69 cents and the Zacks Consensus Estimate of 67 cents, is pegged at +2.99%. This is a meaningful and leading indicator of a likely positive surprise.
BROOKFIELD INFR Price and EPS Surprise
BROOKFIELD INFR Price and EPS Surprise | BROOKFIELD INFR Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Brookfield Infrastructure currently carries a Zacks Rank #3. The combination of Brookfield Infrastructure's favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
During the first half of 2016, Brookfield Infrastructure witnessed a two-fold jump in fiber connection sales in its UK regulated distribution operation. The company expects fiber connection sales to continue increasing in the future, thereby contributing to bottom-line growth.
The partnership has completed a few strategic acquisitions, which will likely contribute to its bottom line in 2016.
The partnership has also completed a three-for-two unit split of its outstanding units during the quarter. The units were split with an aim to keep it accessible to individual unitholders and to improve the liquidity of the units.
Stocks to Consider
Brookfield Infrastructure is not the only company looking up this earnings season. We see likely earnings beats coming from these companies as well:
Ameren Corporation AEE is slated to announce third-quarter 2016 earnings on Nov 4. The company has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NRG Energy, Inc. NRG has an Earnings ESP of +4.55% and a Zacks Rank #2. The company is set to announce third-quarter 2016 earnings on Nov 4.
Pattern Energy Group Inc. PEGI has an Earnings ESP of +16.67% and a Zacks Rank #2. The company is slated to announce third-quarter 2016 earnings on Nov 7.
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