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Ormat Technologies (ORA) Up 12.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Ormat Technologies (ORA - Free Report) . Shares have added about 12.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ormat Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Ormat Technologies Q4 Earnings Top, Revenues Rise Y/Y

Ormat Technologies’ fourth-quarter adjusted earnings per share came in at 41 cents, which surpassed the Zacks Consensus Estimate of 32 cents by 28.1%.

Ormat reported GAAP earnings of 34 cents per share compared with 39 cents generated in the year-ago quarter.

The year-over-year decline can be attributed to higher interest expenses as a result of its recent geothermal assets acquisition and losses related to the minority investment in the Sarulla project in Indonesia.

For 2021, the company generated adjusted earnings of $1.39 per share.

Revenues

In the quarter under review, Ormat Technologies generated revenues of $191 million, which exceeded the Zacks Consensus Estimate of $183 million by 4.2%. Moreover, the top line increased 6.5% on a year-over-year basis driven by higher revenues from its Electricity and Energy Storage segments.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $164.3 million in the fourth quarter, which rose 12.3% year over year.

Product Segment: Revenues in this segment declined 2.6% to $20.3 million.

Energy Storage Segment: Revenues in this division amounted to $6.4 million, up 10% from the prior-year quarter’s figure.

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $20.7 million compared with operating expenses of $21.8 million in the fourth quarter of 2020.

The company’s operating income increased 3.1% year over year to $55 million in the fourth quarter.

The company’s total cost of revenues was $115.4 million, up 10.6% year over year.

Interest expenses were $22.8 million, which increased 19.1% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $239.3 million as of Dec 31, 2021, compared with $448.3 million as of Dec 31, 2020.

The company generated cash from operating activities worth $258.8 million as of Dec 31, 2021 compared with $265 million as of Dec 31, 2020.

Guidance

Ormat Technologies currently projects to generate revenues in the range of $725-$750 million in 2022.

The company anticipates an annual adjusted EBITDA of $430-450 million for 2022.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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