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Shares of Ormat Technologies Inc. (ORA - Free Report) rose 6.8% to reach $81.46 on May 4, reflecting investors’ optimism following the company's first-quarter 2022 results.
The company’s first-quarter adjusted earnings per share came in at 35 cents, which surpassed the Zacks Consensus Estimate of 32 cents by 9.4%. However, earnings declined by 17% from the year-ago quarter’s figure of 42 cents per share.
The year-over-year decline can be attributed to higher interest expenses related to the TerraGen acquisition and a higher tax rate.
Ormat reported GAAP earnings of 33 cents per share compared with the 27 cents generated in the year-ago quarter.
Revenues
In the quarter under review, ORA generated revenues of $183.7 million, which exceeded the Zacks Consensus Estimate of $174 million by 5.5%. Moreover, the top line increased 10.4% on a year-over-year basis, driven by higher revenues from its Electricity and Product segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Electricity Segment: Revenues in this segment amounted to $162.5 million in the first quarter, which rose 12.1% year over year.
Product Segment: Revenues in this segment surged 69.2% to $14.6 million.
Energy Storage Segment: Revenues in this division amounted to $6.6 million, down 48.5% from the prior-year quarter’s figure.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $24.8 million compared with the operating expenses of $23.8 million in the first quarter of 2021.
The company’s operating income decreased by 9.6% year over year to $45.1 million in the first quarter.
The company’s total cost of revenues was $113.8 million, up 22.8% year over year.
Net interest expenses were $21.1 million, which increased 10.9% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $130 million as of Mar 31, 2022 compared with $239.3 million as of Dec 31, 2021.
The company had long-term debt of $1477.1 million as of Mar 31, 2022 compared with $1,538.5 million as of Dec 31, 2021.
Guidance
Ormat Technologies currently projects to generate revenues in the range of $710-$735 million in 2022. The Zacks Consensus Estimate for revenues is currently pegged at $734.8 million, near the high end of the company’s guided range.
Adjusted electricity segment revenues are expected in the band of $630-$640 million, while product segment revenues are anticipated in the range of $50-$60 million. Energy Storage revenues are projected in the range of $30-$35 million.
The company anticipates the annual adjusted EBITDA in the band of $430-450 million for 2022.
Enphase Energy (ENPH - Free Report) reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from the 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.
Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.
First Solar, Inc. (FSLR - Free Report) reported a first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.
First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined by 54.3% from the year-ago quarter’s $803.4 million.
JinkoSolar Holding Co. Ltd. (JKS - Free Report) reported first-quarter 2022 earnings per American Depositary Share of 10 cents, which lagged the Zacks Consensus Estimate of 17 cents by 41.2%. However, earnings improved from the year-ago figure of a loss of 55 cents per share.
In the quarter under review, JinkoSolar’s total revenues of $2.33 billion surpassed the Zacks Consensus Estimate of $1.96 billion by 18.8%. The top line increased 91.7% on a year-over-year basis due to an increase in solar module shipments.
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Ormat Technologies (ORA) Q1 Earnings Top, Revenues Rise Y/Y
Shares of Ormat Technologies Inc. (ORA - Free Report) rose 6.8% to reach $81.46 on May 4, reflecting investors’ optimism following the company's first-quarter 2022 results.
The company’s first-quarter adjusted earnings per share came in at 35 cents, which surpassed the Zacks Consensus Estimate of 32 cents by 9.4%. However, earnings declined by 17% from the year-ago quarter’s figure of 42 cents per share.
The year-over-year decline can be attributed to higher interest expenses related to the TerraGen acquisition and a higher tax rate.
Ormat reported GAAP earnings of 33 cents per share compared with the 27 cents generated in the year-ago quarter.
Revenues
In the quarter under review, ORA generated revenues of $183.7 million, which exceeded the Zacks Consensus Estimate of $174 million by 5.5%. Moreover, the top line increased 10.4% on a year-over-year basis, driven by higher revenues from its Electricity and Product segments.
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 $162.5 million in the first quarter, which rose 12.1% year over year.
Product Segment: Revenues in this segment surged 69.2% to $14.6 million.
Energy Storage Segment: Revenues in this division amounted to $6.6 million, down 48.5% from the prior-year quarter’s figure.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $24.8 million compared with the operating expenses of $23.8 million in the first quarter of 2021.
The company’s operating income decreased by 9.6% year over year to $45.1 million in the first quarter.
The company’s total cost of revenues was $113.8 million, up 22.8% year over year.
Net interest expenses were $21.1 million, which increased 10.9% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $130 million as of Mar 31, 2022 compared with $239.3 million as of Dec 31, 2021.
The company had long-term debt of $1477.1 million as of Mar 31, 2022 compared with $1,538.5 million as of Dec 31, 2021.
Guidance
Ormat Technologies currently projects to generate revenues in the range of $710-$735 million in 2022. The Zacks Consensus Estimate for revenues is currently pegged at $734.8 million, near the high end of the company’s guided range.
Adjusted electricity segment revenues are expected in the band of $630-$640 million, while product segment revenues are anticipated in the range of $50-$60 million. Energy Storage revenues are projected in the range of $30-$35 million.
The company anticipates the annual adjusted EBITDA in the band of $430-450 million for 2022.
Zacks Rank
Ormat Technologies 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
Enphase Energy (ENPH - Free Report) reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from the 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.
Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.
First Solar, Inc. (FSLR - Free Report) reported a first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.
First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined by 54.3% from the year-ago quarter’s $803.4 million.
JinkoSolar Holding Co. Ltd. (JKS - Free Report) reported first-quarter 2022 earnings per American Depositary Share of 10 cents, which lagged the Zacks Consensus Estimate of 17 cents by 41.2%. However, earnings improved from the year-ago figure of a loss of 55 cents per share.
In the quarter under review, JinkoSolar’s total revenues of $2.33 billion surpassed the Zacks Consensus Estimate of $1.96 billion by 18.8%. The top line increased 91.7% on a year-over-year basis due to an increase in solar module shipments.