SunEdison Misses Q1 Earnings Target; Shares Rise on Second Yieldco IPO

SunEdison Q1 Earnings

SunEdison (NYSE:SUNE), the world’s largest renewable energy company, has had quite a week.  They have made many announcements including releasing their Q1 earnings report.  Despite both earnings and revenue for the quarter missing Wall Street estimates, their share price has risen  almost 15% in the last two days. The reasons investors are remain optimistic are many.

New Yieldco Announced

SunEdison announced yesterday that it had acquired several renewable energy portfolios in emerging markets.  They also announced that they have formed a new “yieldco,” TerraForm Global, to own and operate these power plant facilities and have filed with U.S. Securities and Exchange commission for an initial public of  shares from this entity.

A yield company or yieldco as it is  often called, is publicly traded company that own and operate assets such as power plants that generate cash flows that paid out to investors as dividends.  This structure is often used in the energy industry, and have been popular with renewable energy companies.  SunEdison’s first yieldco, TerraForm Power (NASDAQ:TERP) went public in July of 2014.  It owns and operates power plants mainly in the U.S.  First Solar and SunPower announced in February that they are in talks to form a joint yieldco.SunEdison Emerging Markets

All Time MW Records for Q1

“During the first quarter, the team continued our exceptional record of balancing operational execution while accomplishing our strategic initiatives. On the operations front, the team delivered 273 MW, a first quarter record, while also achieving new records in our pipeline, backlog, and projects under construction,” said Ahmad Chatila, Chief Executive Officer.

Execution on M&A; Successful Launch of Wind Platform

  • Closed First Wind in January
  • Announced the Atlantic Power acquisition on April 1
  • Multiple announcements today supporting Emerging Markets initiatives

TerraForm Power (SunEdison’s first yieldco) Continues to Deliver

  • $225 million 2015 Cash Available For Distribution(CAFD) guidance; up from $214 million
  • $1.35 dividend per share guidance for 2015; up from $1.30
  • 1,675 MW of operating assets as of quarter end; up 70% Q/Q
  • 167 MW of drop downs from SUNE in Q1

Q1 Earnings

SunEdison reported a per-share loss of 92 cents excluding items on $323 million in revenue, down 5%. Wall Street analysts had been expecting  a per-share loss ex items of just 40 cents, on $491.8 million in revenue.


Tracey Smith About Tracey Smith
Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women's Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.

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