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8point3 Energy (CAFD) Beats FY16 Earnings, Revenues Up

8point3 Energy Partners LPCAFD reported earnings of $1.27 per share in fiscal 2016 (ended Nov 30, 2016), beating the Zacks Consensus Estimate of $1.10.

The partnership reported net income of $4.2 million in the fourth quarter, compared with net loss of $8.6 million 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 $61.2 million in fiscal 2016, up a massive 474.1% year over year.

In the fiscal fourth quarter, the partnership reported revenues of $14.5 million.

Cash Distribution & Cash Available for Distribution

The partnership recently declared a fiscal fourth-quarter distribution of 24.90 cents per unit. This marks an increase of 3.5% over the fiscal third-quarter level.

The partnership projects fiscal first-quarter fiscal 2017 distribution of approximately 25.65 cents per unit, reflecting another 3% sequential hike.

8point3 Energy generated $20.4 million of cash available for distribution in the fiscal fourth quarter.

Operational Highlights

In fiscal 2016, 8point3 Energy's total operating costs and expenses increased to $39.0 million from $18.3 million in the year-ago quarter.

Higher cost of operations, depreciation, amortization and accretion expenses, along with acquisition-related costs led to the increase in expenditure. Cost of operations was $7.0 million, up from $2.6 million a year ago. Depreciation, amortization and accretion expenses were $22.8 million, up from $4.3 million a year ago.

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 Nov 30, 2016 were $14.3 million, compared with $56.8 million as of Nov 30, 2015.

As of Nov 30, 2016, long-term debt and financing obligations were $384.4 million, compared with $297.2 million as of Nov 30, 2015.

Other Highlights

8point3 Energy's portfolio consisted of 642 MW of solar generating assets as of Nov 2016 end. The partnership completed the acquisition of a 49% interest in SunPower's 102 MW Henrietta solar project during the quarter. 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 projects, both having 20-year contract lives, are expected to generate approximately $11.0 million and $32.0 million in annual cash distributions, respectively.

Guidance

The partnership expects first-quarter fiscal 2017 revenues of $9.3 million to $9.8 million, net loss of $6.4 million to $5.6 million, adjusted EBITDA of $11.8 million to $12.6 million and cash of $19.8 million to $20.3 million available for distribution.

For fiscal 2017, it expects revenues 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.

Price Movement

8point3 Energy's stock has lost about 5.0% in the last three months, outperforming the Zacks categorized Solar industry's 12.9% decline. This could be driven by the company's focus on strategic acquisitions that help to boost its performance.

Zacks Rank & a Stock to Consider

8point3 Energy currently carries a Zacks Rank #2 (Buy). 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 Canadian Solar, Inc. CSIQ , which carries the same Zacks Rank as 8point3 Energy. Canadian Solar posted an average positive earnings surprise of 73.66% in the trailing four quarters. It expects EPS growth of 14% in the next five years.

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First Solar, Inc. (FSLR): Free Stock Analysis Report

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SunPower Corporation (SPWR): Free Stock Analysis Report

8point3 Energy Partners LP (CAFD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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