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  5. BEP: If PBH and BEP announced today can you please review their earnings and give us your insight. [Brookfield Renewable Partners L.P.]
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Q: If PBH and BEP announced today can you please review their earnings and give us your insight.

Thanks


Sheldon

Asked by Sheldon on August 05, 2022
5i Research Answer:

BEP reported EPS of ($0.03) missing estimates of $0.014 and revenues of $1.27B beat estimates of $1.14B. The company reported FFO of $294M, increasing by 10% from the prior year, and it inched closer to achieving profitability. Sales increased by 25% for the quarter, and management has agreed to invest $3B across various transactions and regions into growth initiatives. The sales growth is encouraging, and while the company is heavily investing and not yet profitable, its numerous growth initiatives are promising and its balance sheet remains strong. We think that the company will perform well over the long-term, but it may take some time for its growth initiatives to materialize.

On PBH, EPS of $1.38 beat estimates of $1.33 and revenues of $1.52B beat estimates of $1.46B. Revenue increased by 23.1% year-over-year and adjusted EBITDA increased to $130.8M, representing a 16.6% increase. Management increased revenue guidance to be between $5.75B and $6.0B for 2022. The company noted it is seeing signs of a return to more normal market conditions, and while there are headwinds in higher costs, labour issues, and consumer sentiment shifts, the company is already seeing improved growth in the third quarter and the company is expecting continued growth in its operations. Sales increased by 23.1%, however, its net income increased by 126% led by gains on the investments in associates and a reduction in the fair value of options. It increased its free cash flows, expanded its balance sheet, and management signaled for a positive remainder of the year. Overall, we feel investors should be quite pleased with these results.