Ormat Technologies (ORA) Q3 Earnings Top, Revenues Rise Y/Y
Ormat Technologies Inc.’s ORA third-quarter 2023 adjusted earnings per share came in at 47 cents, which outpaced the Zacks Consensus Estimate of 36 cents by 30.6%. The bottom line also improved a solid 42.4% on a year-over-year basis.
Revenues
In the quarter under review, ORA generated revenues of $208.1 million, which missed the Zacks Consensus Estimate of $211 million by 1.4%. However, the top line rose 18.3% year over year, driven by higher revenues from all operating 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 $157.2 million, which rose 2.9% year over year. This upside was primarily driven by the focused execution of the company’s strategic plan, supported by the addition of North Valley and the resumption of operations at Heber 1.
Product: This segment’s revenues improved a massive 180.2% to $39.8 million from the year-ago quarter’s level. The improvement can be attributed to the higher backlog and the favorable timing of recognized revenues.
Energy: Revenues in this division amounted to $11 million, up 24.5% from the prior-year quarter’s figure. This was due to the commencement of commercial operations across multiple assets and higher energy rates in ERCOT.
Operational Update
Ormat Technologies’ total operating expenses came in at $22.4 million compared with $22.2 million in the year-ago period.
The operating income deteriorated 3.4% year over year to $37.6 million.
The total cost of revenues came in at $148.1 million, up 28.9% year over year.
Net interest expenses were $25.1 million, up 12.1% year over year.
Financial Condition
ORA had cash and cash equivalents of $78.1 million as of Sep 30, 2023 compared with $95.9 million as of Dec 31, 2022.
2023 Guidance
The company updated its guidance for 2023. It now expects revenues in the range of $825-$838 million, down from the prior expectation in the band of $823-$858 million. The Zacks Consensus Estimate is pegged at $830.9 million, lower than the midpoint of the guided range.
Revenues for the Electricity segment are now anticipated in the band of $670-$675 million, down from the prior guidance range of $670-$685 million. The Product segment’s revenues are projected in the band of $125-$130 million. Revenues for the Energy Storage segment are now expected between $30 million and $33 million.
ORA now anticipates annual adjusted EBITDA in the band of $480-$495 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 third-quarter 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 per share reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.
Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.
First Solar, Inc. FSLR reported third-quarter 2023 earnings of $2.50 per share compared to the prior-year quarter’s loss of 46 cents per share. Earnings beat the Zacks Consensus Estimate of $2.09 per share by 19.6%.
First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved by 27.4% from the year-ago quarter’s $628.9 million.
NextEra Energy Partners, LP NEP recorded third-quarter 2023 operating earnings of 57 cents per unit, which surpassed the Zacks Consensus Estimate of 48 cents by 18.8%. However, the bottom line declined 38.7% from 93 cents recorded in the year-ago quarter.
The firm’s operating revenues of $367 million missed the Zacks Consensus Estimate of $417 million by 12%. However, the figure increased 21.5% from $302 million registered in the prior-year period.
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