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What's in Store for 8point3 Energy (CAFD) in Q2 Earnings?
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8point3 Energy Partners LP is slated to report second-quarter fiscal 2016 results on Jun 29, 2016. Last quarter, the partnership had posted a positive earnings surprise of 307.69%.
8point3 Energy is a limited partnership formed by First Solar Inc. (FSLR - Free Report) and SunPower Corp. (SPWR - Free Report) to own and operate a portfolio of selected solar energy generation assets. Based in San Jose, CA, the partnership serves residential, commercial and industrial customers. 8point3 Energy began trading on the NYSE on Jun 19, 2015.
Let’s see how things are shaping up for this announcement.
The partnership swung into profit with a net income of $5.3 million in the fiscal first quarter of 2016 from a net loss incurred in the year-ago period. 8point3 Energy expects solid results in the fiscal second quarter as well with strong cash flows.
With the acquisition of Kern, Hooper and Kingbird assets, 8point3 Energy believes it can deliver its targeted 12% to 15% annual distribution growth rate through 2017. The partnership has identified Right Of First Offer or ROFO portfolio of over 1 gigawatt. Its diversified asset base supported by a favorable policy environment positions it well to drive long-term value for its shareholders.
The partnership expects second quarter fiscal 2016 revenues to be between $11 million and $12 million, a net loss of $2 million to $0.5 million, adjusted EBITDA of $16 million and Cash Available for Distribution of $6 million to $7.5 million.
Recently, it boosted the cash distribution for its Class A shares by 3.5% to 23.25 cents for the fiscal second quarter, bringing the annualized payout to 93 cents.
What Our Model Indicates
Our proven model does not conclusively show that 8point3 Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. However, that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for 8point3 Energy is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents.
Zacks Rank: 8point3 Energy currently carries a Zacks Rank #2, which when combined with an Earnings ESP of 0.00%, makes a surprise prediction difficult.
A Stock to Consider
Investors can instead consider Vivint Solar, Inc. that is likely to see an earnings beat in the upcoming quarter.
Vivint Solar has an earnings ESP of +3.57% and a Zacks Rank #3. The company is expected to report second-quarter 2016 results on Aug 9.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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What's in Store for 8point3 Energy (CAFD) in Q2 Earnings?
8point3 Energy Partners LP is slated to report second-quarter fiscal 2016 results on Jun 29, 2016. Last quarter, the partnership had posted a positive earnings surprise of 307.69%.
8point3 Energy is a limited partnership formed by First Solar Inc. (FSLR - Free Report) and SunPower Corp. (SPWR - Free Report) to own and operate a portfolio of selected solar energy generation assets. Based in San Jose, CA, the partnership serves residential, commercial and industrial customers. 8point3 Energy began trading on the NYSE on Jun 19, 2015.
Let’s see how things are shaping up for this announcement.
8POINT3 ENERGY Price and EPS Surprise
8POINT3 ENERGY Price and EPS Surprise | 8POINT3 ENERGY Quote
Factors Affecting this Quarter
The partnership swung into profit with a net income of $5.3 million in the fiscal first quarter of 2016 from a net loss incurred in the year-ago period. 8point3 Energy expects solid results in the fiscal second quarter as well with strong cash flows.
With the acquisition of Kern, Hooper and Kingbird assets, 8point3 Energy believes it can deliver its targeted 12% to 15% annual distribution growth rate through 2017. The partnership has identified Right Of First Offer or ROFO portfolio of over 1 gigawatt. Its diversified asset base supported by a favorable policy environment positions it well to drive long-term value for its shareholders.
The partnership expects second quarter fiscal 2016 revenues to be between $11 million and $12 million, a net loss of $2 million to $0.5 million, adjusted EBITDA of $16 million and Cash Available for Distribution of $6 million to $7.5 million.
Recently, it boosted the cash distribution for its Class A shares by 3.5% to 23.25 cents for the fiscal second quarter, bringing the annualized payout to 93 cents.
What Our Model Indicates
Our proven model does not conclusively show that 8point3 Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. However, that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for 8point3 Energy is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents.
Zacks Rank: 8point3 Energy currently carries a Zacks Rank #2, which when combined with an Earnings ESP of 0.00%, makes a surprise prediction difficult.
A Stock to Consider
Investors can instead consider Vivint Solar, Inc. that is likely to see an earnings beat in the upcoming quarter.
Vivint Solar has an earnings ESP of +3.57% and a Zacks Rank #3. The company is expected to report second-quarter 2016 results on Aug 9.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>