Ormat Technologies (ORA) Q3 Earnings Top, Revenues Rise Y/Y
Shares of Ormat Technologies Inc. ORA rose 11.8% to reach $98.81 on Nov 4, reflecting investors’ optimism following the company's third-quarter 2022 results.
The company’s third-quarter adjusted earnings per share came in at 33 cents, which surpassed the Zacks Consensus Estimate of 25 cents by 32%. The bottom line also improved 2.5% on a year-over-year basis.
Ormat reported GAAP earnings of 32 cents per share compared with 26 cents generated in the year-ago quarter.
The year-over-year increase can be attributed to an improvement in operating income, driven by all operating segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote
Revenues
In the quarter under review, ORA generated revenues of $175.9 million, which exceeded the Zacks Consensus Estimate of $173 million by 1.6%. Moreover, the top line increased 10.7% on a year-over-year basis, driven by higher revenues from all its segments.
Segment Revenues
Electricity Segment: Revenues in this segment amounted to $152.8 million in the third quarter, which rose 7.1% year over year.
Product Segment: Revenues in this segment surged 35.1% to $14.2 million.
Energy Storage Segment: Revenues in this division amounted to $8.8 million, up 56.2% from the prior-year quarter’s figure.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $19 million compared with operating expenses of $23.4 million in the third quarter of 2021.
The company’s operating income declined 18.2% year over year to $27.2 million in the third quarter.
The company’s total cost of revenues was $114.8 million, up 19.9% year over year.
Net interest expenses were $22.4 million, which dropped 0.8% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $154.6 million as of Sep 30, 2022, compared with $239.3 million as of Dec 31, 2021.
Guidance
Ormat Technologies currently projects to generate revenues in the range of $720-$735 million in 2022, compared with the prior guidance $710-$735 million.
Electricity segment revenues are currently expected in the band of $630-$638 million compared with the prior guidance of $630-$640 million. Product segment revenues are anticipated in the range of $60-$67 million, up from the previous guidance of $50-$60 million. Energy Storage revenues are projected to be $30 million, compared with the earlier range of $30-$35 million.
The company currently anticipates annual adjusted EBITDA in the band of $430-$442 million for 2022 compared with the prior guidance of $430-450 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 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
First Solar, Inc. FSLR reported third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
First-Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
NextEra Energy Partners, LP NEP recorded third-quarter 2022 operating earnings per unit of 93 cents, which surpassed the Zacks Consensus Estimate of 63 cents by 47.6%. The bottom line improved 287.5% from the year-ago quarter’s 24 cents per unit.
For the third quarter of 2022, the firm’s operating revenues of $302 million missed the Zacks Consensus Estimate of $415 million by 23.4%. However, revenues improved 19.8% year over year due to contributions from the new projects.
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