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Ormat Technologies (ORA) Q3 Earnings Beat, Revenues Drop Y/Y

Zacks Equity Research
·3 min read

Shares of Ormat Technologies Inc.’s ORA increased 0.3% to reach $72.74 on Nov 5, reflecting optimism from investors following the company's solid Q3 results.

The company’s third-quarter 2020 earnings per share (EPS) came in at 31 cents, which surpassed the Zacks Consensus Estimate of 24 cents by 29.2%. The bottom line, moreover, increased 3.3% year over year.

Revenues

In the quarter under review, Ormat Technologies generated revenues of $158.9 million, which missed the Zacks Consensus Estimate of $161 million by 1.4%. Moreover, the top line dropped 6.8% on a year-over-year basis due to lower revenues from its electricity and product segment.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $123.7 million in the third quarter, which slipped 0.3% year over year.

Product Segment: Revenues in this segment plunged 31.2% year over year to $29.6 million.

Energy Storage and Management Services: Revenues in this division amounted to $5.7 million, surging 62.9% from the prior-year quarter.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $20.1 million compared with operating expenses of $16.8 million in the third quarter of 2019.

The company’s operating income soared 33.6% year over year to $51.7 million in the third quarter.

The company’s total cost of revenues was $104.9 million, down 8.8% year over year.

Interest expenses were $21.8 million, which increased 8.4% year over year.

Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote

Financial Condition

Ormat Technologies had cash and cash equivalents of $197.3 million as of Sep 30, 2020, compared with $71.2 million as of Dec 31, 2019.

Total long-term debt was $850.7 million as of Sep 30, 2020, compared with $1,023 million as of Dec 31, 2019.

Guidance 2020

Ormat Technologies updated its expectations for 2020. It now expects 2020 total revenues in the range of $707-$717 million, lower than the earlier predicted band of $710-$725 million.

Segment-wise, the company now expects electricity segment revenues of $550-$555 million compared with the prior guidance of $550-$560 million. However, the company’s Product segment revenues are now expected to be $142-$147 million compared with the prior guidance of $140-$150 million. Energy Storage and Management Services segment revenues are expected to be approximately $15 million.

Ormat Technologies currently anticipates annual adjusted EBITDA of $417-$425 million compared with $400-$410 million projected earlier.

Zacks Rank

Ormat Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Oils-Energy Releases

Devon Energy Corp. DVN reported third-quarter 2020 adjusted loss per share of 4 cents, narrower than the Zacks Consensus Estimate of a loss of 8 cents.

WPX Energy Inc.’s WPX third-quarter 2020 earnings of 11 cents per share beat the Zacks Consensus Estimate by 83.3%.

Energy Transfer LP ET reported third-quarter 2020 earnings of 30 cents per unit, beating the Zacks Consensus Estimate of 23 cents by 30.4%.

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