Ormat Technologies Inc.’s (ORA - Free Report) shares lost 5% to reach $63.83 on Feb 26, following the company’s fourth-quarter and full-year 2023 results.
The company reported fourth-quarter 2023 adjusted earnings per share of 67 cents, which outpaced the Zacks Consensus Estimate of 60 cents by 11.7%. The bottom line, however, declined 8.2% on a year-over-year basis.
The company reported GAAP earnings of 59 cents per share compared with 32 cents in the year-ago quarter.
For 2023, Ormat generated adjusted earnings of $2.05 per share, up from $1.63 in the previous year.
Revenues
In the quarter under review, ORA generated revenues of $241.3 million, which surpassed the Zacks Consensus Estimate of $240 million. Moreover, the top line rose 17.4% year over year, driven by higher revenues from electricity and product segments.
For 2023, the company generated revenues worth $829.4 million, up 13% from $734.1 million recorded in 2022.
Segmental Revenues
Electricity: Revenues in this segment amounted to $183.9 million, up 11.3% year over year. This upside was primarily driven by contributions from new projects added early in 2023 as well as improved generation at the Heber and Puna power plants.
Product: This segment’s revenues improved a solid 56.7% to reach $50.4 million from the year-ago quarter’s level. The improvement can be attributed to higher backlog and the favorable timing of recognized revenues.
Energy: Revenues in this division amounted to $7 million, down 14% from the prior-year quarter’s figure. This was due to lower merchant rates at PJM and CAISO.
Operational Update
Ormat’s total operating expenses came in at $26.8 million compared with $50 million in the year-ago period.
The operating income improved 70.8% year over year to $51.6 million.
The total cost of revenues came in at $162.9 million, up 30% year over year.
Net interest expenses were $25.8 million, up 8.2% year over year.
Financial Condition
ORA had cash and cash equivalents of $195.8 million as of Dec 31, 2023, compared with $95.9 million as of Dec 31, 2022.
2024 Guidance
The company initiated its guidance for 2023. It expects to generate revenues in the range of $860-$910 million. The Zacks Consensus Estimate for the same is pegged at $988.5 million, higher than the guided range.
Revenues for the Electricity segment are anticipated in the band of $710-$730 million, while that for the Product segment are expected in the range of $115-$135 million. Revenues for the Energy Storage segment are expected between $35 million and $45 million.
ORA anticipates annual adjusted EBITDA in the band of $515-$545 million.
Zacks Rank
Ormat 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
Clearway Energy Inc. (CWEN - Free Report) recorded fourth-quarter 2023 earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate of 16 cents by 100%. The bottom line also improved 220% from the year-ago quarter’s level of 10 cents.
Total revenues of $249 million missed the Zacks Consensus Estimate of $284 million by 12.2%. The top line also declined 7.1% from the year-ago quarter’s figure of $268 million.
NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2023 operating loss of 35 cents per unit, which missed the Zacks Consensus Estimate of earnings of 3 cents per unit.
The consensus estimate for 2024 EPS is pegged at 61 cents, implying a year-over-year increase of 79.4%. NEP has a long-term earnings growth rate of 14.72%.
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, indicating a 64.2% decline from $1.51 reported in the prior-year quarter. The bottom line was on par with the Zacks Consensus Estimate.
Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.
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Ormat Technologies Inc.’s (ORA - Free Report) shares lost 5% to reach $63.83 on Feb 26, following the company’s fourth-quarter and full-year 2023 results.
The company reported fourth-quarter 2023 adjusted earnings per share of 67 cents, which outpaced the Zacks Consensus Estimate of 60 cents by 11.7%. The bottom line, however, declined 8.2% on a year-over-year basis.
The company reported GAAP earnings of 59 cents per share compared with 32 cents in the year-ago quarter.
For 2023, Ormat generated adjusted earnings of $2.05 per share, up from $1.63 in the previous year.
Revenues
In the quarter under review, ORA generated revenues of $241.3 million, which surpassed the Zacks Consensus Estimate of $240 million. Moreover, the top line rose 17.4% year over year, driven by higher revenues from electricity and product segments.
For 2023, the company generated revenues worth $829.4 million, up 13% from $734.1 million recorded in 2022.
Segmental Revenues
Electricity: Revenues in this segment amounted to $183.9 million, up 11.3% year over year. This upside was primarily driven by contributions from new projects added early in 2023 as well as improved generation at the Heber and Puna power plants.
Product: This segment’s revenues improved a solid 56.7% to reach $50.4 million from the year-ago quarter’s level. The improvement can be attributed to higher backlog and the favorable timing of recognized revenues.
Energy: Revenues in this division amounted to $7 million, down 14% from the prior-year quarter’s figure. This was due to lower merchant rates at PJM and CAISO.
Operational Update
Ormat’s total operating expenses came in at $26.8 million compared with $50 million in the year-ago period.
The operating income improved 70.8% year over year to $51.6 million.
The total cost of revenues came in at $162.9 million, up 30% year over year.
Net interest expenses were $25.8 million, up 8.2% year over year.
Financial Condition
ORA had cash and cash equivalents of $195.8 million as of Dec 31, 2023, compared with $95.9 million as of Dec 31, 2022.
2024 Guidance
The company initiated its guidance for 2023. It expects to generate revenues in the range of $860-$910 million. The Zacks Consensus Estimate for the same is pegged at $988.5 million, higher than the guided range.
Revenues for the Electricity segment are anticipated in the band of $710-$730 million, while that for the Product segment are expected in the range of $115-$135 million. Revenues for the Energy Storage segment are expected between $35 million and $45 million.
ORA anticipates annual adjusted EBITDA in the band of $515-$545 million.
Zacks Rank
Ormat 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
Clearway Energy Inc. (CWEN - Free Report) recorded fourth-quarter 2023 earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate of 16 cents by 100%. The bottom line also improved 220% from the year-ago quarter’s level of 10 cents.
Total revenues of $249 million missed the Zacks Consensus Estimate of $284 million by 12.2%. The top line also declined 7.1% from the year-ago quarter’s figure of $268 million.
NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2023 operating loss of 35 cents per unit, which missed the Zacks Consensus Estimate of earnings of 3 cents per unit.
The consensus estimate for 2024 EPS is pegged at 61 cents, implying a year-over-year increase of 79.4%. NEP has a long-term earnings growth rate of 14.72%.
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, indicating a 64.2% decline from $1.51 reported in the prior-year quarter. The bottom line was on par with the Zacks Consensus Estimate.
Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.
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