Analyst Estimates: Here's What Brokers Think Of Ormat Technologies, Inc. (NYSE:ORA) After Its Yearly Report
Ormat Technologies, Inc. (NYSE:ORA) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to US$63.99 in the week after its latest yearly results. Ormat Technologies reported in line with analyst predictions, delivering revenues of US$829m and statutory earnings per share of US$2.08, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Ormat Technologies
Taking into account the latest results, the most recent consensus for Ormat Technologies from six analysts is for revenues of US$905.3m in 2024. If met, it would imply a meaningful 9.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 16% to US$2.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$911.2m and earnings per share (EPS) of US$2.44 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$77.25. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ormat Technologies, with the most bullish analyst valuing it at US$92.00 and the most bearish at US$69.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ormat Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 9.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ormat Technologies is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ormat Technologies going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Ormat Technologies you should be aware of, and 1 of them can't be ignored.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
