Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

What's in Store for 8point3 Energy (CAFD) in Q1 Earnings?

8point3 Energy Partners LP CAFD is expected to report first-quarter 2016 results on Apr 6, 2016 after the closing bell.

8point3 Energy is a limited partnership formed by First Solar Inc. FSLR and SunPower Corp. SPWR 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.

Factors Affecting this Quarter

In Jan 2016, 8point3 Energy, along with Wells Fargo & Company WFC, acquired 22 megawatts (“MW”) of solar power systems under construction at 27 Kern High School District sites in Kern County, CA, from SunPower. This acquisition marks the first drop-down transaction for the partnership. Moreover, the partnership recently signed an agreement to acquire interest in SunPower’s 50-MW Hooper Project in San Luis Valley, CO, and First Solar’s 40-MW Kingbird Project in Kern County, CA, which will mark its second drop-down transaction. 8point3 Energy’s CEO believes that these drop-down acquisitions will allow the partnership to attain its 12–15% targeted annual distribution growth rate through 2017 end, with no need of further acquisitions.

During its fourth-quarter 2015 earnings call, 8point3 Energy stated that all of its project assets in its initial portfolio, which includes 432 MW of power plants, commercial and residential assets; and 131 MW of assets that commenced commercial operations in the fourth quarter, are generating expected cash flows. This is again an indication that the partnership is well positioned to attain its targeted annual distribution growth rate, notwithstanding the recent volatility in the yieldco industry.

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 14 cents.

Zacks Rank: 8point3 Energy currently carries a Zacks Rank #3, which when combined with an Earnings ESP of 0.00%, makes a surprise prediction difficult.

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 >>


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
 
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
 
FIRST SOLAR INC (FSLR): Free Stock Analysis Report
 
SUNPOWER CORP-A (SPWR): Free Stock Analysis Report
 
8POINT3 ENERGY (CAFD): Free Stock Analysis Report
 
To read this article on Zacks.com click here.