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Ormat Technologies (ORA) Q4 Earnings Top, Revenues Rise Y/Y

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Shares of Ormat Technologies Inc. (ORA - Free Report) rose 14.1% to reach $71.82 on Feb 25, reflecting investor optimism following the company's fourth-quarter 2021 results.

The company’s fourth-quarter adjusted earnings per share came in at 41 cents, which surpassed the Zacks Consensus Estimate of 32 cents by 28.1%.

Ormat reported GAAP earnings of 34 cents per share compared with 39 cents generated in the year-ago quarter.

The year-over-year decline can be attributed to higher interest expenses as a result of its recent geothermal assets acquisition and losses related to the minority investment in the Sarulla project in Indonesia.

For 2021, the company generated adjusted earnings of $1.39 per share.

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 $191 million, which exceeded the Zacks Consensus Estimate of $183 million by 4.2%. Moreover, the top line increased 6.5% on a year-over-year basis driven by higher revenues from its Electricity and Energy Storage segments.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $164.3 million in the fourth quarter, which rose 12.3% year over year.

Product Segment: Revenues in this segment declined 2.6% to $20.3 million.

Energy Storage Segment: Revenues in this division amounted to $6.4 million, up 10% from the prior-year quarter’s figure.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $20.7 million compared with operating expenses of $21.8 million in the fourth quarter of 2020.

The company’s operating income increased 3.1% year over year to $55 million in the fourth quarter.

The company’s total cost of revenues was $115.4 million, up 10.6% year over year.

Interest expenses were $22.8 million, which increased 19.1% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $239.3 million as of Dec 31, 2021, compared with $448.3 million as of Dec 31, 2020.

The company generated cash from operating activities worth $258.8 million as of Dec 31, 2021 compared with $265 million as of Dec 31, 2020.

Guidance

Ormat Technologies currently projects to generate revenues in the range of $725-$750 million in 2022.

The company anticipates an annual adjusted EBITDA 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

SunPower Corporation (SPWR) reported fourth-quarter 2021 adjusted loss of 7 cents per share in contrast to the Zacks Consensus Estimate of earnings of 4 cents. The bottom line also marked a deterioration from the year-ago quarter’s earnings of 14 cents.

Moreover, the adjusted top line improved 13.8% from the year-ago quarter’s $337.5 million. SunPower had cash and cash equivalents of $127.1 million as of Jan 2, 2022, compared with $232.8 million as of Jan 3, 2021.

Enphase Energy (ENPH - Free Report) reported fourth-quarter 2021 adjusted earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 28.1%. The bottom line improved 43.1% from 51 cents per share reported in the prior-year quarter.

Its fourth-quarter revenues of $412.7 million beat the Zacks Consensus Estimate of $403 million by 2.4%. The top line soared 55.8% from the year-ago quarter’s $264.8 million, driven by strong demand for its microinverter systems

Evergy (EVRG - Free Report) reported fourth-quarter 2021 operating earnings of 16 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents by 300%. The reported earnings were down 42.9% year over year.

Evergy reaffirmed its 2022 operating earnings per share guidance in the range of $3.43-$3.63 and adjusted EPS annual growth target within 6-8% from 2021 through 2025.

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