BBU Earnings Prediction
The chart below shows how BBU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BBU sees a -4.14% change in stock price 10 days leading up to the earnings, and a +0.38% change 10 days following the report. On the earnings day itself, the stock moves by +2.21%. This data can give you a slight idea of what to expect for the next quarter's release.
BBU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.23B
-35.88%
-22.72%
Gross Margin
23.43%
144.06%
175.00%
Operating Margin
19.97%
193.25%
235.63%
Net Margin
18.79%
5426.47%
3379.63%
EPS
1.39
795.00%
-1644.44%
No Data Available
BBU Earnings Analysis
Brookfield Business Partners L.P.Limited Partnership Units Corporation (BBU.N) Earnings Conference Call
Positive
Adjusted EBITDA Surge: 1. Strong Adjusted EBITDA Growth: Adjusted EBITDA increased to $844 million in Q3 2024, up from $655 million in the prior year, reflecting robust operational performance.
Strategic Acquisition Impact: 2. Successful Acquisition: The acquisition of Network International, a leading digital payment services provider, positions the company to process over $50 billion in payments annually, enhancing its market presence in the Middle East.
Monetization Success: 3. Significant Proceeds from Monetization: The company generated over $350 million from distributions and monetizations, including $265 million from the sale of Altera's shuttle tanker operations, demonstrating effective capital recycling.
Investment Success Metrics: 4. High Return on Investments: Since launching BBU, the company has realized over $6 billion from the sale of 20 businesses, achieving a 3 times multiple on capital and an IRR of approximately 30%.
Liquidity Strength: 5. Strong Liquidity Position: The company ended the quarter with $1.6 billion of liquidity at the corporate level, providing ample resources for strategic acquisitions and operational investments.
Negative
Stagnant Same-Store EBITDA: 1. Weak Same-Store Performance: Adjusted EBITDA on a same-store basis was in line with the prior year, indicating stagnation despite overall growth in adjusted EBITDA to $844 million from $655 million.
Sales Volume Decline: 2. Declining Sales Volumes: The engineered components manufacturer experienced weaker sales volumes, with expectations for demand normalization next year, suggesting ongoing challenges in this segment.
Healthcare Cost Challenges: 3. Healthcare Cost Structure Issues: The healthcare services operation in Australia is facing an unsustainable cost structure primarily due to wage inflation, which could hinder profitability.
Infrastructure Services Decline: 4. Infrastructure Services Segment Decline: The Infrastructure Services segment's adjusted EBITDA fell to $146 million from $228 million year-over-year, reflecting a significant decline in performance.
High Debt Burden: 5. High Debt Levels at Altera: Altera's net debt stood at approximately $575 million, indicating a substantial financial burden that could impact future operations and profitability.
BBU FAQs
How does BBU typically perform around its earnings report dates?
Is Brookfield Business Partners L.P. LP Units (BBU) Q3 2024 Earnings Call Summary positive or negative?
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BBU Earning Call Sentiment
Brookfield Business Partners L.P. LP Units (BBU) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BBU.N
-3.07%Positive
The earnings call summary presents mixed signals. The financial performance shows a strong adjusted EBITDA increase, but it's partly due to one-time credits. The company's market strategy includes acquisitions and divestitures, which carry both opportunities and risks. The Q&A section highlights uncertainties, such as regulatory risks and competitive pressures. Despite a share repurchase program, operational risks and market volatility persist. Given the market cap and these factors, the stock is likely to remain stable, resulting in a neutral prediction for the next two weeks.
