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8point3 Energy (CAFD) Q2 Earnings Lag Estimates, Revenues Up

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8point3 Energy Partners LP reported earnings of 12 cents per share in second-quarter fiscal 2017 (ended May 31, 2017), missing the Zacks Consensus Estimate of 16 cents by 25%.

Earnings declined 76% from 50 cents in the year-ago period.

Revenues

8point3 Energy, a limited partnership formed by two major solar companies – First Solar Inc. (FSLR - Free Report) and SunPower Corp. , generated revenues of $16.7 million in the reported quarter, up 23.4% year over year. It also surpassed the Zacks Consensus Estimate of $16 million by 4.4%.

Cash Distribution & Cash Available for Distribution

The partnership recently declared a distribution of 26.42 cents per unit  in the fiscal second quarter. This marks an increase of 3% over the fiscal first quarter level.

It also projects distribution of approximately 27.21 cents per unit in third-quarter fiscal 2017, reflecting another 3% sequential hike.

8point3 Energy generated $18.8 million of cash available for distribution in the fiscal second quarter.

Operational Highlights

In reported quarter, 8point3 Energy’s total operating costs and expenses increased 13.8% to $11 million from $9.6 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 $2.1 million, up from $1.8 million a year ago. Depreciation and accretion expenses were $6.9 million, up from $5.4 million a year ago. Selling, general and administrative expenses were $1.9 million, up from $1.7 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 May 31, 2017 were $10.6 million, compared with $14.3 million as of Nov 30, 2016.

As of May 31, 2017, long-term debt and financing obligations was $716.7 million compared with $384.4 million as of Nov 30, 2016.

Other Highlights

8point3 Energy’s portfolio consisted of 945 MW of the U.S. solar generating assets as of May 2017 end. The partnership continues to deliver solid performance and is expected to generate annual CAFD of approximately $100 million in 2017.

Guidance

The partnership expects fiscal third quarter revenues in the range of $25.0−$26.0 million, net income in the band of $21.0−$24.0 million, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $44.0−$47.5 million and cash of $28.0−$30 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.

Upcoming Peer Release

ReneSola Ltd. (SOL - Free Report) is expected to report its second-quarter 2017 earnings results on Aug 23.

Zacks Rank

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.

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