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Ormat Technologies (ORA) Q1 Earnings Top, Revenues Fall Y/Y

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Shares of Ormat Technologies Inc. (ORA - Free Report) declined 4.1% to reach $67.01 on May 11, reflecting investor skepticism following the company's Q1 results.

The company’s first-quarter 2021 earnings per share (EPS) came in at 42 cents, which surpassed the Zacks Consensus Estimate of 36 cents by 16.7%. The bottom line, however, decreased 17.6% year over year.

Revenues

In the quarter under review, Ormat Technologies generated revenues of $166.4 million, which exceeded the Zacks Consensus Estimate of $166 million by 0.4%. However, the top line declined 13.4% on a year-over-year basis due to significantly lower revenues from its product segment.

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 $145 million in the first quarter, which rose 1.5% year over year.

Product Segment: Revenues in this segment plunged 81.8% year over year to $8.6 million.

Energy Storage and Management Services: Revenues in this division amounted to $12.7 million, surging a massive 589.1% from the prior-year quarter.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $23.8 million compared with operating expenses of $20.8 million in the first quarter of 2020.

The company’s operating income declined 18.3% year over year to $49.9 million in the first quarter.

The company’s total cost of revenues was $92.7 million, down 15.9% year over year.

Interest expenses were $19 million, which increased 10.1% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $376.6 million as of Mar 31, 2021, compared with $448.3 million as of Dec 31, 2020.

The company generated cash from operating activities worth $68.9 million as of Mar 31, 2021 compared with $79.8 million as of Mar 31, 2020.

Guidance 2021

Ormat Technologies continues to project full-year 2021 total revenues of $640-$680 million, with electricity segment revenues estimated in the range of $570-$580 million. Likewise, the company’s Product segment revenues are expected to be $50-$70 million.

The Zacks Consensus Estimate for the company’s overall revenues is pegged at $657.7 million, a bit lower than the company’s guided range.

The company still anticipates annual adjusted EBITDA of $400-410 million for 2021. It continues to expect annual adjusted EBITDA attributable to minority interest to be approximately $32 million.

Zacks Rank

Ormat Technologies currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Sector Releases

First Solar Inc. (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.

Ameresco (AMRC - Free Report) reported earnings of 25 cents per share for the first quarter of 2021, beating the Zacks Consensus Estimate of 10 cents per share.

Evergy, Inc. (EVRG - Free Report) reported first-quarter 2021 operating earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 17%.

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