What's the outlook for BBU's earnings growth?

Brookfield Business (BBU) is facing a challenging outlook for earnings growth, with significant declines in both net income and revenue expected in the near term. 1. **Recent Performance**: BBU's net income has plummeted by 131.8% to -$1.11 billion in the most recent quarter ending on December 31, 2024, compared to the previous quarter. This is a stark indication of the company's current financial distress. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |BBU|BBU.N|Brookfield Business|2024 Q1|0|-12.668992586131706||169| |BBU|BBU.N|Brookfield Business|2024 Q2|58.536585365853654|-11.550422034651266|54.54545454545454|169| |BBU|BBU.N|Brookfield Business|2024 Q3|3440.816326530612|-35.88443641919577||169| |BBU|BBU.N|Brookfield Business|2024 Q4|-131.80252583237657|-44.595300261096604||169| 2. **Revenue Decline**: The total revenue of the company has also seen a substantial decline of 44.6% to $7.43 billion in the same quarter. This reduction in revenue further underscores the severity of the earnings crisis that BBU is experiencing. 3. **Analyst Expectations**: The average analyst price target for BBU is $31.67, indicating a "Strong Buy" consensus rating. However, this target is significantly higher than the current price, suggesting that analysts are optimistic about the company's future performance despite the current financial difficulties. 4. **Estimates vs. Reality**: The estimated EPS for BBU as of December 31, 2024, is $0.16, which is a far cry from the actual diluted EPS of -$1.11 billion reported for the same period. This discrepancy highlights the need for caution when interpreting analyst estimates, especially in the context of BBU's current earnings downturn. In conclusion, while there is potential for a rebound based on analyst expectations, the current financial data indicates that BBU's earnings growth outlook is severely compromised in the immediate future. The company will need to demonstrate significant improvements in both net income and revenue to meet analyst expectations and restore investor confidence.