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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) have declined 7.4% to reach $82.44 since its earnings release, reflecting investors’ disappointment following the company's fourth-quarter 2022 results.

The company’s fourth-quarter adjusted earnings per share came in at 73 cents, which surpassed the Zacks Consensus Estimate of 48 cents by 52.1%. The bottom line also improved 78.1% on a year-over-year basis.

Ormatreported GAAP earnings of 32 cents per share compared with the 34 cents generated in the year-ago quarter.

For 2022, the company recorded adjusted earnings of $1.63 per share, up from the $1.39 per share generated in 2021.

Revenues

In the quarter under review, ORA generated revenues of $205.5 million, which exceeded the Zacks Consensus Estimate of $198 million by 3.9%. Moreover, the top line increased 7.6% on a year-over-year basis, driven by higher revenues from all its segments.

For 2022, Ormat reported revenues worth $734.1 million, up from the $663.1 million recorded in 2021.

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 $165.2 million in the fourth quarter, which rose 0.6% year over year, primarily due to contributions from the new projects added and higher capacity and rates observed at Puna.

Product Segment: Revenues in this segment surged 58.2% to $32.2 million, mainly due to contributions from the newly signed contracts in Indonesia, Nicaragua and New Zealand.

Energy Storage Segment: Revenues in this division amounted to $8.1 million, up 27.3% from the prior-year quarter’s figure. The year-over-year increase can be attributed to higher rates at PJM.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $19.3 million compared with operating expenses of $29.3 million in the fourth quarter of 2021.

The company’s operating income declined 44.9% year over year to $30.2 million in the fourth quarter.

The company’s total cost of revenues was $125.3 million, up 8.5% year over year.

Net interest expenses were $23.8 million, which increased 4.6% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $95.9 million as of Dec 31, 2022 compared with $239.3 million as of Dec 31, 2021.

Guidance

Ormat Technologies projects to generate revenues in the range of $823-$858 million in 2023. The Zacks Consensus Estimate of $869.1 million is higher than the midpoint of the guided range.

The Electricity segment’s revenues are currently expected in the band of $670-$685 million. The Product segment’s revenues are anticipated in the range of $120-$135 million. Energy Storage revenues are projected in the range of $33-$38 million.

The company currently anticipates annual adjusted EBITDA in the band of $480-$510 million for 2023.

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 reported fourth-quarter 2022 adjusted earnings of 15 cents per share. The bottom line marked an improvement from the year-ago quarter’s earnings of 2 cents. The Zacks Consensus Estimate for fourth-quarter earnings was pegged at 9 cents per share.

During the quarter under review, SunPower’s adjusted revenues came in at $492.4 million, while its GAAP revenues were $497.3 million. Revenues marginally missed the Zacks Consensus Estimate of $493 million by 0.4%. However, the adjusted top line improved by 47.8% from the year-ago quarter’s $347.5 million.

Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.51 per share, which improved by a solid 106.8% from the 73 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.27 by 18.9%.

Enphase Energy’s fourth-quarter revenues of $724.7 million beat the Zacks Consensus Estimate of $704 million by 2.9%. The top line soared 75.6% from the year-ago quarter’s $412.7 million, driven by the strong demand for its Enphase Energy Systems.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported fourth-quarter adjusted earnings of $2.86 per share, which surpassed the Zacks Consensus Estimate of $1.60 by 78.8%. The bottom line increased 160% from the prior-year quarter’s $1.10 per share.

SolarEdge’s fourth-quarter revenues of $890.7 million surpassed the Zacks Consensus Estimate of $875 million by 1.8%. The top line surged 61.4% from the year-ago quarter’s $551.9 million.


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