Ormat Technologies (ORA) Q2 Earnings Top, Revenues Rise Y/Y
Ormat Technologies Inc.’s ORA shares declined 2.6% to $76.98 on Aug 4, following its earnings release, reflecting investors’ disappointment in the stock.
The company’s second-quarter 2023 earnings per share came in at 40 cents, which outpaced the Zacks Consensus Estimate of 38 cents by 5.3%. The bottom line also improved a solid 100% on a year-over-year basis.
Revenues
In the quarter under review, ORA generated revenues of $194.8 million, which missed the Zacks Consensus Estimate of $198 million by 1.5%. The top line, however, rose 15.2% year over year, driven by higher revenues from the Electricity and Product segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote
Segmental Revenues
Electricity: Revenues in this segment amounted to $155.3 million, which rose 2.7% year over year. This upside was primarily driven by focused execution of the company’s strategic plan, supported by the addition of North Valley and the upgrade of Dixie Valley.
Product: This segment’s revenues improved a massive 222% to $33.5 million from the year-ago quarter’s level. The improvement can be attributed to higher backlog and favorable timing of recognized revenues.
Energy: Revenues in this division amounted to $6 million, down 19.7% from the prior-year quarter’s figure. This was due to lower energy rates at the PJM compared with the strong commodity price-driven rates in the second quarter of 2022.
Operational Update
Ormat Technologies’ total operating expenses came in at $25.3 million compared with $19 million in the year-ago period.
Operating income deteriorated 37.3% year over year to $24.2 million.
Total cost of revenues came in at $145.3 million, up 30.3% year over year.
Net interest expenses were $24.4 million, up 19.5% year over year.
Financial Condition
ORA had cash and cash equivalents of $275.1 million as of Jun 30, 2023, compared with $95.9 million as of Dec 31, 2022.
2023 Guidance
The company still projects revenues in the range of $823-$858 million for 2023. The Zacks Consensus Estimate for the same is pegged at $842.5 million, a tad higher than the midpoint of the guided range.
Revenues for the Electricity segment are still anticipated in the band of $670-$685 million. The consensus estimate for the Product segment’s revenues is pinned in the $120-$135 million range. Revenues for the Energy Storage segment are still expected between $33 million and $38 million.
ORA also continues to anticipate annual adjusted EBITDA in the band of $480-$510 million.
Zacks Rank
Ormat Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Sector Releases
Enphase Energy, Inc. ENPH reported second-quarter 2023 adjusted earnings of $1.47 per share, indicating a 37.4% improvement from $1.07 reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.27 by 15.8%.
Enphase Energy’s second-quarter revenues of $711.1 million missed the Zacks Consensus Estimate of $727 million by 2.2%. However, the top line soared 34.1% from the prior-year quarter’s reported figure of $530.2 million.
First Solar, Inc. FSLR reported second-quarter 2023 earnings of $1.59 per share, which improved 205.8% from the prior-year quarter’s level of 52 cents. The Zacks Consensus Estimate for the reported quarter’s earnings was pegged at 95 cents.
First Solar’s second-quarter net sales were $810.7 million, which beat the Zacks Consensus Estimate of $720 million by 12.6%. The top line also improved 30.6% from the year-ago quarter’s $620.9 million.
NextEra Energy Partners, LP NEP recorded second-quarter 2023 operating earnings of 53 cents per unit, which missed the Zacks Consensus Estimate of 72 cents by 26.4%. The bottom line also declined 79.7% from $2.61 recorded in the year-ago quarter.
The firm’s operating revenues of $350 million missed the Zacks Consensus Estimate of $393 million by 10.9%. The figure also declined 3.3% from $362 million registered in the prior-year period.
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