Yahoo Finance Ormat Technologies (ORA) Q1 Earnings Top, Revenues Rise Y/Y
Ormat Technologies Inc.’s ORA shares declined 2.1% to reach $83.40 following its earnings release, reflecting investors’ disappointment in the stock.
The company’s first-quarter 2023 earnings per share came in at 51 cents, which outpaced the Zacks Consensus Estimate of 49 cents by 4.1%. The bottom line also improved 54.5% on a year-over-year basis.
Revenues
In the quarter under review, ORA generated revenues of $185.2 million, which missed the Zacks Consensus Estimate of $212 million by 12.8%. The top line, however, rose 0.8% on a year-over-year basis, driven by higher revenues from the Electricity segment.
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 $170.3 million, which rose 4.8% year over year. This was primarily due to contributions from Ormat’s portfolio expansion efforts in 2022, including the addition of the CD4, Tungsten and Heber 2 geothermal power plants.
Product: This segment’s revenues declined 31.4% to $10 million from the year-ago quarter’s level. The deterioration can be attributed to the timing of revenue recognition in the reported quarter.
Energy: Revenues in this division amounted to $4.9 million, down 25.6% from the prior-year quarter’s figure. This was due to lower energy rates captured by the PJM facilities.
Operational Update
Ormat Technologies’ total operating expenses came in at $22.9 million compared with $24.8 million in the first quarter of 2022.
Operating income improved 17.9% year over year to $53.2 million.
Total cost of revenues amounted to $109.2 million, down 4.1% year over year.
Net interest expenses totaled $23.6 million, up 12.1% year over year.
Financial Condition
ORA had cash and cash equivalents of $414.9 million as of Mar 31, 2023, compared with $95.9 million as of Dec 31, 2022.
2023 Guidance
The company still projects revenues in the range of $823-$858 million for 2023. The Zacks Consensus Estimate of $838.1 million is a bit lower than the midpoint of the guided range.
Revenues for the Electricity segment are still anticipated in the band of $670-$685 million. The same for the Product segment is projected in the $120-$135 million range. Energy Storage revenues are still expected between $33 million and $38 million.
ORA also continues to anticipate annual adjusted EBITDA in the band of $480-$510 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.
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