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Ormat Technologies (ORA) Q2 Earnings Beat, Revenues Drop Y/Y
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Ormat Technologies Inc.’s (ORA - Free Report) second-quarter 2020 earnings per share (EPS) came in at 45 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 18.4%. The bottom line however declined 32.8% year over year.
The year-over-year downside can be attributed to an increase in income tax provision.
Revenues
In the quarter under review, Ormat Technologies generated revenues of $174.9 million, which exceeded the Zacks Consensus Estimate of $167 million by 4.8%. However, the top line dropped 5% on a year-over-year basis due to lower revenues from each of its segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Electricity Segment: Revenues at this segment amounted to $128.7 million in the second quarter, which slipped 0.3% year over year.
Product Segment: Revenues at this segment declined 16% year over year to $43.7 million.
Energy Storage and Management Services: Revenues at this division amounted to $2.5 million, down 15%from the prior-year quarter.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $17.3 million, compared with operating expenses of $18.3 million in the second quarter of 2019.
The company’s operating income rose 2.6% year over year to $48.1 million in the second quarter.
The company’s total cost of revenues was $109.5 million, down 7.9% year over year.
Interest expenses were $19.8 million, which declined 8.1% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $173.7 million as of Jun 30, 2020, compared with $71.2 million as of Dec 31, 2019.
Total long-term debt was $1,132 million as of Jun 30, 2020, compared with $1,012 million as of Dec 31, 2019.
Guidance 2020
Ormat Technologies updated its expectations for 2020. It now expects 2020 total revenues in the range of $710-$725 million, narrower than the earlier predicted band of $710-$740 million. The Zacks Consensus Estimate for the same, pegged at $719.1 million, lies little above the midpoint of the guided range.
Segment-wise, the company now expects electricity segment revenues of $550-$560 million, compared with theprior guidance of $550-$570 million. However, the company’s Product segment revenues are stillexpected to be $140-$150 million.
Ormat Technologies currently anticipates annual adjusted EBITDA of $400-$410 million, compared with$400-$415 million projected earlier.
Zacks Rank
Ormat Technologies currently carries a Zacks Rank #5 (Strong Sell).
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2020 adjusted loss per share of 18 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents.
Noble Energy, Inc. reported second-quarter adjusted loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 39 cents.
TOTAL SE reported second-quarter 2020 operating earnings of 2 cents (€0.02) per share against the Zacks Consensus Estimate of a loss of 24 cents.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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Ormat Technologies (ORA) Q2 Earnings Beat, Revenues Drop Y/Y
Ormat Technologies Inc.’s (ORA - Free Report) second-quarter 2020 earnings per share (EPS) came in at 45 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 18.4%. The bottom line however declined 32.8% year over year.
The year-over-year downside can be attributed to an increase in income tax provision.
Revenues
In the quarter under review, Ormat Technologies generated revenues of $174.9 million, which exceeded the Zacks Consensus Estimate of $167 million by 4.8%. However, the top line dropped 5% on a year-over-year basis due to lower revenues from each of its segments.
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 at this segment amounted to $128.7 million in the second quarter, which slipped 0.3% year over year.
Product Segment: Revenues at this segment declined 16% year over year to $43.7 million.
Energy Storage and Management Services: Revenues at this division amounted to $2.5 million, down 15%from the prior-year quarter.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $17.3 million, compared with operating expenses of $18.3 million in the second quarter of 2019.
The company’s operating income rose 2.6% year over year to $48.1 million in the second quarter.
The company’s total cost of revenues was $109.5 million, down 7.9% year over year.
Interest expenses were $19.8 million, which declined 8.1% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $173.7 million as of Jun 30, 2020, compared with $71.2 million as of Dec 31, 2019.
Total long-term debt was $1,132 million as of Jun 30, 2020, compared with $1,012 million as of Dec 31, 2019.
Guidance 2020
Ormat Technologies updated its expectations for 2020. It now expects 2020 total revenues in the range of $710-$725 million, narrower than the earlier predicted band of $710-$740 million. The Zacks Consensus Estimate for the same, pegged at $719.1 million, lies little above the midpoint of the guided range.
Segment-wise, the company now expects electricity segment revenues of $550-$560 million, compared with theprior guidance of $550-$570 million. However, the company’s Product segment revenues are stillexpected to be $140-$150 million.
Ormat Technologies currently anticipates annual adjusted EBITDA of $400-$410 million, compared with$400-$415 million projected earlier.
Zacks Rank
Ormat Technologies currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Oils-Energy Releases
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2020 adjusted loss per share of 18 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents.
Noble Energy, Inc. reported second-quarter adjusted loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 39 cents.
TOTAL SE reported second-quarter 2020 operating earnings of 2 cents (€0.02) per share against the Zacks Consensus Estimate of a loss of 24 cents.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>