Ormat Technologies Inc.’s ORA second-quarter 2019 adjusted earnings per share (EPS) came in at 40 cents, which surpassed the Zacks Consensus Estimate of 31 cents by 2%. The bottom line also improved 25% from 32 cents registered in the prior-year quarter.
Including a one-time tax benefit, the company reported GAAP earnings of 66 cents per share against a loss of a penny incurred in the year-ago quarter.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as gross profit generated in the quarter under review.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote
Ormat Technologies’ second-quarter revenues of $184.1 million exceeded the Zacks Consensus Estimate of $176 million by 4.6%. The top line also improved 3.2% on a year-over-year basis, particularly driven by revenue growth at its Electricity segment.
Electricity Segment: Revenues at this segment increased 5.6% year over year to $129.1 million from $122.2 million. The upside was primarily driven by the expanded operations at McGuinness Hills and Olkaria. Also, contributions from the USG acquisition provided a boost to this unit’s top line.
Product Segment: Revenues at this segment decreased 5.3% year over year to $52 million from $54.9 million.
Other Segment: Revenues at this division amounted to $3 million compared with $1.2 million in the prior-year quarter.
In the reported quarter, Ormat Technologies’ total cost of revenues was $118.9 million, down 1.6% year over year.
The company’s total operating expenses totaled $18.3 million, down 12.3% year over year.
Consequently, operating income surged 28% year over year to $46.9 million.
Interest expenses were $21.6 million, up 35.8% year over year.
Ormat Technologies had cash and cash equivalents of $110.7 million as of Jun 30, 2019, compared with $98.8 million as of Dec 31, 2018.
Total liabilities amounted to $1.69 billion as of Jun 30, 2019, compared with $1.67 billion as of Dec 31, 2018.
Ormat Technologies continues to expect 2019 total revenues in the $720-$742 million band. The Zacks Consensus Estimate for the same, pegged at $733.1 million, lies above the midpoint of the company’s guided range.
Segment-wise, the company still expects revenues at the Electricity segment to be in the range of $530-$540 million, excluding any impact from Puna during 2019. Likewise, the company’s Product segment revenues are expected to be $180-$190 million.
Furthermore, annual adjusted EBITDA for 2019 is anticipated in the range of $375-$385 million compared with $370-$380 million projected earlier, with no Puna-related EBITDA.
Ormat Technologies has a Zacks Rank #4 (Sell).
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