Ormat Technologies Inc.’s ORA third-quarter 2019 adjusted earnings per share (EPS) came in at 30 cents, which missed the Zacks Consensus Estimate of 33 cents by 9.1%. The bottom line also declined 3.2% from 31 cents registered in the prior-year quarter.
Excluding the one-time impact of its Puna Plant in Hawaii, the company reported GAAP earnings of 35 cents per share compared with 26 cents in the year-ago quarter.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as operating income generated in the reported quarter.
Ormat Technologies’ third-quarter revenues of $170.5 million missed the Zacks Consensus Estimate of $171 million by a whisker. The top line also improved 2.4% on a year-over-year basis, primarily driven by revenue growth at its Electricity segment.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote
Electricity Segment: Revenues at this segment increased 6.1% year over year to $124 million from $116.9 million. The upside was primarily driven by expanded operations at McGuinness Hills and Olkaria. Also, contributions from the USG acquisition boosted this unit’s top line.
Product Segment: Revenues at this segment decreased 11.2% year over year to $43 million from $48.4 million.
Other Segment: Revenues at this division amounted to $3.5 million compared with $1.2 million in the prior-year quarter.
In the reported quarter, Ormat Technologies’ total cost of revenues was $115 million, down 2.3% year over year.
The company’s total operating expenses were $16.8 million, down 26.7% year over year.
Consequently, operating income rose 49.5% year over year to $38.7 million.
Interest expenses were $20.1 million, up 7.4% year over year.
Ormat Technologies had cash and cash equivalents of $97.6 million as of Sep 30, 2019, compared with $98.8 million as of Dec 31, 2018.
Total liabilities amounted to $1.75 billion as of Sep 30, 2019, compared with $1.67 billion as of Dec 31, 2018.
Ormat Technologies updated its full-year guidance. The company currently expects to generate total revenues in the range of $731-$742 million, compared with the earlier guidance of $720-$742 million. The Zacks Consensus Estimate for the same, pegged at $735.2 million, lies just below the midpoint of the company’s guided range.
Segment-wise, the company currently expects revenues at the Electricity segment to be in the range of $535-$540 million, compared with the prior guidance range of $530-$540 million, excluding any impact from Puna during 2019.
The company’s Product segment revenues are now expected in the range of $185-$190 million, compared with the prior guided range of $180-$190 million.
Furthermore, annual adjusted EBITDA for 2019 is anticipated in the range of $385-$390 million compared with $375-$385 million projected earlier, with no Puna-related EBITDA.
Ormat Technologies has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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