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Ormat Technologies (ORA) Q1 Earnings Top, Revenues Rise Y/Y

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·4-min read
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Shares of Ormat Technologies Inc. ORA rose 6.8% to reach $81.46 on May 4, reflecting investors’ optimism following the company's first-quarter 2022 results.

The company’s first-quarter adjusted earnings per share came in at 35 cents, which surpassed the Zacks Consensus Estimate of 32 cents by 9.4%. However, earnings declined by 17% from the year-ago quarter’s figure of 42 cents per share.

The year-over-year decline can be attributed to higher interest expenses related to the TerraGen acquisition and a higher tax rate.

Ormat reported GAAP earnings of 33 cents per share compared with the 27 cents generated in the year-ago quarter.

Revenues

In the quarter under review, ORA generated revenues of $183.7 million, which exceeded the Zacks Consensus Estimate of $174 million by 5.5%. Moreover, the top line increased 10.4% on a year-over-year basis, driven by higher revenues from its Electricity and Product segments.

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

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $162.5 million in the first quarter, which rose 12.1% year over year.

Product Segment: Revenues in this segment surged 69.2% to $14.6 million.

Energy Storage Segment: Revenues in this division amounted to $6.6 million, down 48.5% from the prior-year quarter’s figure.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $24.8 million compared with the operating expenses of $23.8 million in the first quarter of 2021.

The company’s operating income decreased by 9.6% year over year to $45.1 million in the first quarter.

The company’s total cost of revenues was $113.8 million, up 22.8% year over year.

Net interest expenses were $21.1 million, which increased 10.9% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $130 million as of Mar 31, 2022 compared with $239.3 million as of Dec 31, 2021.

The company had long-term debt of $1477.1 million as of Mar 31, 2022 compared with $1,538.5 million as of Dec 31, 2021.

Guidance

Ormat Technologies currently projects to generate revenues in the range of $710-$735 million in 2022. The Zacks Consensus Estimate for revenues is currently pegged at $734.8 million, near the high end of the company’s guided range.

Adjusted electricity segment revenues are expected in the band of $630-$640 million, while product segment revenues are anticipated in the range of $50-$60 million. Energy Storage revenues are projected in the range of $30-$35 million.

The company anticipates the annual adjusted EBITDA in the band of $430-450 million for 2022.

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 ENPH reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from the 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.

Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.

First Solar, Inc. FSLR reported a first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.

First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined by 54.3% from the year-ago quarter’s $803.4 million.

JinkoSolar Holding Co. Ltd. JKS reported first-quarter 2022 earnings per American Depositary Share of 10 cents, which lagged the Zacks Consensus Estimate of 17 cents by 41.2%. However, earnings improved from the year-ago figure of a loss of 55 cents per share.

In the quarter under review, JinkoSolar’s total revenues of $2.33 billion surpassed the Zacks Consensus Estimate of $1.96 billion by 18.8%. The top line increased 91.7% on a year-over-year basis due to an increase in solar module shipments.


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