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Shares of Ormat Technologies Inc. (ORA - Free Report) rose 11.8% to reach $98.81 on Nov 4, reflecting investors’ optimism following the company's third-quarter 2022 results.
The company’s third-quarter adjusted earnings per share came in at 33 cents, which surpassed the Zacks Consensus Estimate of 25 cents by 32%. The bottom line also improved 2.5% on a year-over-year basis.
Ormat reported GAAP earnings of 32 cents per share compared with 26 cents generated in the year-ago quarter.
The year-over-year increase can be attributed to an improvement in operating income, driven by all operating segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
In the quarter under review, ORA generated revenues of $175.9 million, which exceeded the Zacks Consensus Estimate of $173 million by 1.6%. Moreover, the top line increased 10.7% on a year-over-year basis, driven by higher revenues from all its segments.
Segment Revenues
Electricity Segment: Revenues in this segment amounted to $152.8 million in the third quarter, which rose 7.1% year over year.
Product Segment: Revenues in this segment surged 35.1% to $14.2 million.
Energy Storage Segment: Revenues in this division amounted to $8.8 million, up 56.2% from the prior-year quarter’s figure.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $19 million compared with operating expenses of $23.4 million in the third quarter of 2021.
The company’s operating income declined 18.2% year over year to $27.2 million in the third quarter.
The company’s total cost of revenues was $114.8 million, up 19.9% year over year.
Net interest expenses were $22.4 million, which dropped 0.8% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $154.6 million as of Sep 30, 2022, compared with $239.3 million as of Dec 31, 2021.
Guidance
Ormat Technologies currently projects to generate revenues in the range of $720-$735 million in 2022, compared with the prior guidance $710-$735 million.
Electricity segment revenues are currently expected in the band of $630-$638 million compared with the prior guidance of $630-$640 million. Product segment revenues are anticipated in the range of $60-$67 million, up from the previous guidance of $50-$60 million. Energy Storage revenues are projected to be $30 million, compared with the earlier range of $30-$35 million.
The company currently anticipates annual adjusted EBITDA in the band of $430-$442 million for 2022 compared with the prior guidance of $430-450 million.
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
First Solar, Inc. (FSLR - Free Report) reported third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
First-Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2022 operating earnings per unit of 93 cents, which surpassed the Zacks Consensus Estimate of 63 cents by 47.6%. The bottom line improved 287.5% from the year-ago quarter’s 24 cents per unit.
For the third quarter of 2022, the firm’s operating revenues of $302 million missed the Zacks Consensus Estimate of $415 million by 23.4%. However, revenues improved 19.8% year over year due to contributions from the new projects.
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Ormat Technologies (ORA) Q3 Earnings Top, Revenues Rise Y/Y
Shares of Ormat Technologies Inc. (ORA - Free Report) rose 11.8% to reach $98.81 on Nov 4, reflecting investors’ optimism following the company's third-quarter 2022 results.
The company’s third-quarter adjusted earnings per share came in at 33 cents, which surpassed the Zacks Consensus Estimate of 25 cents by 32%. The bottom line also improved 2.5% on a year-over-year basis.
Ormat reported GAAP earnings of 32 cents per share compared with 26 cents generated in the year-ago quarter.
The year-over-year increase can be attributed to an improvement in operating income, driven by all operating segments.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote
Revenues
In the quarter under review, ORA generated revenues of $175.9 million, which exceeded the Zacks Consensus Estimate of $173 million by 1.6%. Moreover, the top line increased 10.7% on a year-over-year basis, driven by higher revenues from all its segments.
Segment Revenues
Electricity Segment: Revenues in this segment amounted to $152.8 million in the third quarter, which rose 7.1% year over year.
Product Segment: Revenues in this segment surged 35.1% to $14.2 million.
Energy Storage Segment: Revenues in this division amounted to $8.8 million, up 56.2% from the prior-year quarter’s figure.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $19 million compared with operating expenses of $23.4 million in the third quarter of 2021.
The company’s operating income declined 18.2% year over year to $27.2 million in the third quarter.
The company’s total cost of revenues was $114.8 million, up 19.9% year over year.
Net interest expenses were $22.4 million, which dropped 0.8% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $154.6 million as of Sep 30, 2022, compared with $239.3 million as of Dec 31, 2021.
Guidance
Ormat Technologies currently projects to generate revenues in the range of $720-$735 million in 2022, compared with the prior guidance $710-$735 million.
Electricity segment revenues are currently expected in the band of $630-$638 million compared with the prior guidance of $630-$640 million. Product segment revenues are anticipated in the range of $60-$67 million, up from the previous guidance of $50-$60 million. Energy Storage revenues are projected to be $30 million, compared with the earlier range of $30-$35 million.
The company currently anticipates annual adjusted EBITDA in the band of $430-$442 million for 2022 compared with the prior guidance of $430-450 million.
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, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
First Solar, Inc. (FSLR - Free Report) reported third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
First-Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
NextEra Energy Partners, LP (NEP - Free Report) recorded third-quarter 2022 operating earnings per unit of 93 cents, which surpassed the Zacks Consensus Estimate of 63 cents by 47.6%. The bottom line improved 287.5% from the year-ago quarter’s 24 cents per unit.
For the third quarter of 2022, the firm’s operating revenues of $302 million missed the Zacks Consensus Estimate of $415 million by 23.4%. However, revenues improved 19.8% year over year due to contributions from the new projects.