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Ormat Technologies (ORA) Q3 Earnings Top, Revenues Fall Y/Y

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Shares of Ormat Technologies Inc. (ORA - Free Report) increased 8.1% to reach $80.19 on Nov 9, reflecting investor optimism following the company's third-quarter 2021 results.

The company’s third-quarter adjusted earnings per share came in at 32 cents, which surpassed the Zacks Consensus Estimate of 25 cents by 28%.

Ormat reported GAAP earnings of 26 cents per share in the reported quarter compared with 31 cents generated in the year-ago quarter.

The year-over-year decline can be attributed to lower operating income earned by the company on account of increased general and administrative expenses.

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

Revenues

In the quarter under review, Ormat Technologies generated revenues of $158.8 million, which missed the Zacks Consensus Estimate of $161 million by 1.6%. Moreover, the top line slipped 0.1% on a year-over-year basis due to lower revenues from its product segment.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $142.6 million in the third quarter, which rose 15.4% year over year.

Product Segment: Revenues in this segment plunged 64.5% to $10.5 million.

Energy Storage Segment: Revenues in this division amounted to $5.7 million, almost flat when compared to the prior-year quarter’s figure.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $27.2 million compared with operating expenses of $2.3 million in the third quarter of 2020.

The company’s operating income declined 30.4% year over year to $36 million in the third quarter.

The company’s total cost of revenues was $95.7 million, down 8.8% year over year.

Interest expenses were $22.2 million, which increased 2.2% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $267.8 million as of Sep 30, 2021, compared with $448.3 million as of Dec 31, 2020.

The company generated cash from operating activities worth $147.8 million as of Sep 30, 2021 compared with $238.9 million as of Sep 30, 2020.

Guidance

Ormat Technologies currently projects to generate revenues in the range of $652-$675 million in 2021, narrower than its prior-guided range of $650-$685 million.

The Zacks Consensus Estimate for the company’s revenues is pegged at $660.7 million, lower than the mid-point of the company’s newly guided range.

The company still anticipates an annual adjusted EBITDA of $400-410 million for 2021.

Zacks Rank

Ormat Technologies currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Sector Releases

First Solar (FSLR - Free Report) reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%.

Ameresco (AMRC - Free Report) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of 34 cents per share.

Evergy (EVRG - Free Report) reported third-quarter 2021 operating earnings of $1.98 per share, which surpassed the Zacks Consensus Estimate of $1.68 by 17.9%.

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