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8point3 Energy (CAFD) Reports Q1 Earnings, Revenues Rise

Zacks Equity Research

8point3 Energy Partners LP CAFD reported earnings of 3 cents per share in first-quarter fiscal 2017 (ended February 28, 2017). The Zacks Consensus Estimate was pegged at a loss of 18 cents.

Earnings declined 88.9% from 27 cents in the year-ago period.
 

Revenues

8point3 Energy, a limited partnership formed by two major solar companies – First Solar Inc. FSLR and SunPower Corp. SPWR, generated revenues of $9.9 million in the reported quarter, up 39.4% year over year. However, it missed the Zacks Consensus Estimate of $10.0 million by 1%.

Cash Distribution & Cash Available for Distribution

The partnership recently declared a fiscal first quarter distribution of 25.65 cents per unit. This marks an increase of 3% over the fiscal fourth quarter level.

It also projects second-quarter fiscal 2017 distribution of approximately 26.42 cents per unit, reflecting another 3% sequential hike.

8point3 Energy generated $22.1 million of cash available for distribution in the fiscal first quarter.

Operational Highlights

In fiscal first quarter, 8point3 Energy’s total operating costs and expenses increased 30.4% to $10.9 million from $8.4 million in the year-ago quarter.

Higher cost of operations, depreciation and accretion expenses, along with selling, general and administrative costs led to the increase in expenditure. Cost of operations was $2.2 million, up from $1.3 million a year ago. Depreciation and accretion expenses were $6.8 million, up from $4.6 million a year ago. Selling, general and administrative expenses were $1.9 million, up from $1.6 million in the year ago period.

8point3 Energy Partners LP Price, Consensus and EPS Surprise

 

8point3 Energy Partners LP Price, Consensus and EPS Surprise | 8point3 Energy Partners LP Quote

Financial Update

8point3 Energy’s cash and cash equivalents as of Feb 28, 2017 were $7.0 million, compared with $14.3 million as of Nov 30, 2016.

As of Feb 28, 2017, long-term debt and financing obligations was $708.5 million, compared with $384.4 million as of Nov 30, 2016.

Other Highlights

8point3 Energy’s portfolio consisted of 945 MW of U.S. solar generating assets as of Feb 2017 end. On Dec 1, the partnership closed the acquisition of a 34% interest in First Solar’s 300 MW Stateline solar project, located in San Bernardino County. The project has 20-year contract life and is expected to generate approximately $32.0 million in annual cash distributions.

Guidance

The partnership expects second-quarter fiscal 2017 revenues in the range of $14.0−$16.0 million, net income in the band of $3.0−$5.0 million, adjusted EBITDA of $24.0−$26.5 million and cash of $15.0−$17.5 million available for distribution.

For fiscal 2017, it reiterated its expectation of revenues in the range of $63.3–$66.7 million, net income of $27.0–$32.6 million, adjusted EBITDA of $106.5–$113.1 million and cash of $91.5–$101.0 million available for distribution.

Zacks Rank & a Stock to Consider

8point3 Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the solar industry may also consider Vivint Solar, Inc. VSLR, which carries a Zacks Rank #2 (Buy). It posted an average positive earnings surprise of 6.89% in the trailing four quarters. It expects EPS growth of 13.9% in the next five years.

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First Solar, Inc. (FSLR): Free Stock Analysis Report
 
SunPower Corporation (SPWR): Free Stock Analysis Report
 
Vivint Solar, Inc. (VSLR): Free Stock Analysis Report
 
8point3 Energy Partners LP (CAFD): Free Stock Analysis Report
 
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