How reliable are BBU's earnings forecasts?
4/11/2025 01:41pm
**Brookfield Business Partners (BBU) has a mixed track record of earnings forecasting accuracy.** Here's an analysis based on the available data:
1. **Recent Performance**: BBU's estimated EPS for 2025Q1 is $0.07, which is a significant improvement from the previous quarter's EPS of -$2.06. This suggests an improvement in the company's financial performance, which could be indicative of better forecasting accuracy.
2. **Historical Accuracy**: BBU has beaten its EPS estimate 50% of the time in the past 12 months. This indicates that while there is room for improvement, the company has a reasonable likelihood of exceeding expectations.
3. **Analyst Ratings and Price Targets**: The consensus rating for BBU is a "Strong Buy" with four buy ratings and no holds or sells. This positive sentiment from analysts could reflect confidence in the company's future performance and potential for earnings growth.
4. **Industry Comparison**: BBU's industry has shown a mixed trend in earnings expectations. While some companies in the sector have seen earnings revisions downward, BBU's estimates have remained stable. This suggests that BBU's earnings forecasts may be more reliable compared to some of its peers.
5. **Market Expectations**: The market expects BBU to deliver an increase in earnings and revenues when it reports results for the quarter ended December 2024. This widespread expectation of growth could be a sign that analysts and investors alike are anticipating a positive earnings report.
In conclusion, while BBU's earnings forecasts have had some inconsistencies in the past, the company's recent positive performance, analyst ratings, and market expectations suggest that the current earnings forecasts may be more reliable. However, investors should always consider the inherent risks and uncertainties that come with financial forecasting.