8point3 Energy Partners LP reported earnings of 27 cents per share in the second quarter of fiscal 2016 (ending May 31, 2016), while the Zacks Consensus Estimate was a loss of 2 cents per share. The partnership swung into profit with a net income of $10 million in the reported quarter from a net loss incurred in the year-ago period.
8point3 Energy, a limited partnership formed by two major solar companies, First Solar Inc. (FSLR - Free Report) and SunPower Corp. (SPWR - Free Report) , generated revenues of $13.5 million in the fiscal second quarter, up 520.3% year over year. The reported number was also ahead of the Zacks Consensus Estimate of $12 million.
Cash Distribution & Cash Available for Distribution
The partnership had earlier declared a second-quarter distribution of 23.25 cents per share. This is an increase of 3.5% over the first quarter.
The partnership has projected a fiscal third quarter distribution of approximately 24.06 cents per share, another 3.5% increase over the sequentially preceding quarter.
8point3 Energy generated cash available for distribution of $10.3 million in the fiscal second quarter.
In the fiscal second quarter, 8point3 Energy’s total operating costs and expenses surged to $9.6 million from $5.8 million in the year-ago quarter.
Higher selling, depreciation, amortization and accretion expenses led to the increase. Depreciation, amortization and accretion expenses were $5.4 million, up from $0.7 million a year ago.
8point3 Energy’s cash and cash equivalents as of May 31, 2016, were $20 million. It has $101 million available on its five-year revolving credit facility.
As of May 31, 2016, long-term debt and financing obligations were $362.5 million compared with $297.2 million as of Nov 30, 2015.
8point3 Energy‘s entire portfolio of 525 MW is producing energy from May 2016. The partnership remains confident that this will help it to achieve a targeted distribution growth rate of 12% to 15% through 2017.
The partnership expects fiscal third quarter 2016 revenues to be between $23 million and $24 million, net income of $10 million to $11 million, adjusted EBITDA of $29 million and $30 million and Cash Available for Distribution of $20 million to $21 million.
For fiscal 2016, it expects to report revenue of $57.1 million to $59.1 million, net income of $1.8 million to $3.8 million, adjusted EBITDA of $68.8 million to $70.8 million, Cash Available for Distribution of $71.0 million to $73.5 million along with 12% to 15% distribution growth rate.
8point3 Energy currently carries a Zacks Rank #2 (Hold). Investors interested in the solar industry may also consider ReneSola Ltd. (SOL - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy).
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