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Ormat Technologies (ORA) Beats on Q2 Earnings, Ups Revenue View

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Shares of Ormat Technologies Inc. (ORA - Free Report) declined 3.9% to reach $67.59 on Aug 10, reflecting investor skepticism following the company's second-quarter 2021 results.

The company’s second-quarter earnings per share (EPS) came in at 23 cents, which surpassed the Zacks Consensus Estimate of 21 cents by 9.5%. The bottom line, however, decreased 48.9% year over year.

Revenues

In the quarter under review, Ormat Technologies generated revenues of $146.9 million, which missed the Zacks Consensus Estimate of $147 million by a whisker. Moreover, the top line declined 16% 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 $133.9 million in the second quarter, which rose 4% year over year.

Product Segment: Revenues in this segment plunged 83% to $7.4 million.

Energy Storage Segment: Revenues in this division amounted to $5.6 million, surging a solid 123.8% from the prior-year quarter.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $23.4 million compared with operating expenses of $17.3 million in the second quarter of 2020.

The company’s operating income declined 40.5% year over year to $28.7 million in the second quarter.

The company’s total cost of revenues was $94.9 million, down 13.3% year over year.

Interest expenses were $18.6 million, which decreased 5.9% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $250 million as of Jun 30, 2021, compared with $448.3 million as of Dec 31, 2020.

The company generated cash from operating activities worth $33 million as of Jun 30, 2021 compared with $55.2 million as of Jun 30, 2020.

Guidance 2021

Ormat Technologies currently projects to generate revenues in the range of $650-$685 million in 2021, up from its prior guided range of $640-$680 million..

The Zacks Consensus Estimate for the company’s revenues is pegged at $659.2 million, lower than the mid-point of the company’s guided range.

The company still anticipates annual adjusted EBITDA of $400-410 million for 2021.

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 (FSLR - Free Report) reported second-quarter 2021 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 28.3%.

Ameresco (AMRC - Free Report) came out with quarterly earnings of 34 cents per share for the second quarter of 2021, beating the Zacks Consensus Estimate of 26 cents by 30.8%.

Evergy (EVRG - Free Report) reported second-quarter 2021 operating earnings of 85 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 14.9%.


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