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Ormat Technologies (ORA) Q3 Earnings Beat, Revenues Drop Y/Y

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Shares of Ormat Technologies Inc.’s (ORA - Free Report) increased 0.3% to reach $72.74 on Nov 5, reflecting optimism from investors following the company's solid Q3 results.

The company’s third-quarter 2020 earnings per share (EPS) came in at 31 cents, which surpassed the Zacks Consensus Estimate of 24 cents by 29.2%. The bottom line, moreover, increased 3.3% year over year.

Revenues

In the quarter under review, Ormat Technologies generated revenues of $158.9 million, which missed the Zacks Consensus Estimate of $161 million by 1.4%. Moreover, the top line dropped 6.8% on a year-over-year basis due to lower revenues from its electricity and product segment.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $123.7 million in the third quarter, which slipped 0.3% year over year.

Product Segment: Revenues in this segment plunged 31.2% year over year to $29.6 million.

Energy Storage and Management Services: Revenues in this division amounted to $5.7 million, surging 62.9% from the prior-year quarter.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $20.1 million compared with operating expenses of $16.8 million in the third quarter of 2019.

The company’s operating income soared 33.6% year over year to $51.7 million in the third quarter.

The company’s total cost of revenues was $104.9 million, down 8.8% year over year.

Interest expenses were $21.8 million, which increased 8.4% year over year.

Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Financial Condition

Ormat Technologies had cash and cash equivalents of $197.3 million as of Sep 30, 2020, compared with $71.2 million as of Dec 31, 2019.

Total long-term debt was $850.7 million as of Sep 30, 2020, compared with $1,023 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 $707-$717 million, lower than the earlier predicted band of $710-$725 million.

Segment-wise, the company now expects electricity segment revenues of $550-$555 million compared with the prior guidance of $550-$560 million. However, the company’s Product segment revenues are now expected to be $142-$147 million compared with the prior guidance of $140-$150 million. Energy Storage and Management Services segment revenues are expected to be approximately $15 million.

Ormat Technologies currently anticipates annual adjusted EBITDA of $417-$425 million compared with $400-$410 million projected earlier.

Zacks Rank

Ormat Technologies currently carries a Zacks Rank #2 (Buy). 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 third-quarter 2020 adjusted loss per share of 4 cents, narrower than the Zacks Consensus Estimate of a loss of 8 cents.

WPX Energy Inc.’s third-quarter 2020 earnings of 11 cents per share beat the Zacks Consensus Estimate by 83.3%.

Energy Transfer LP (ET - Free Report) reported third-quarter 2020 earnings of 30 cents per unit, beating the Zacks Consensus Estimate of 23 cents by 30.4%.

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