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Ormat (ORA) Q1 Earnings Miss Estimates, Revenues Rise Y/Y

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Ormat Technologies Inc. (ORA - Free Report) reported first-quarter 2024 adjusted earnings per share of 65 cents, which missed the Zacks Consensus Estimate of 68 cents by 4.4%. The bottom line, however, improved a solid 27.5% on a year-over-year basis.

The company reported GAAP earnings of 64 cents per share compared with 51 cents in the year-ago quarter.

Revenues

ORA generated revenues of $224.2 million, which missed the Zacks Consensus Estimate by 0.1%. However, the top line rose 21.1% year over year, driven by higher revenues from Electricity, Product and Energy Storage segments.

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

Segmental Revenues

Electricity: Revenues in this segment amounted to $191.3 million, up 12.3% year over year. This upside was primarily driven by higher generation from the Puna, Heber 1 and North Valley plants, as well as new revenue contributions from the Enel acquisition.

Product: This segment’s revenues improved a solid 147.3% to reach $24.8 million from the year-ago quarter’s level. The improvement can be attributed to higher backlog and favorable timing of recognized revenues.

Energy: Revenues in this division amounted to $8.1 million, up 65.6% from the prior-year quarter’s figure. This was driven by the impact of the CODs for storage facilities that the company achieved in the first quarter and higher merchant prices in the PJM region.

Operational Update

Ormat’s total operating expenses were $26.2 million compared with $22.9 million in the year-ago period.

The operating income dropped 1.1% year over year to $52.6 million.

The total cost of revenues was $145.4 million, up 33.2% year over year.

Net interest expenses were $31 million, up 31% year over year.

Financial Condition

ORA had cash and cash equivalents of $201.5 million as of Mar 31, 2024, compared with $195.8 million as of Dec 31, 2023.

2024 Guidance

The company reiterated its guidance for 2024. It still expects to generate revenues in the range of $860-$910 million. The Zacks Consensus Estimate for revenues is pegged at $881.9 million, lower than the mid-point of the guided range.

Revenues for the Electricity segment continue to be anticipated in the band of $710-$730 million, while Product segment revenues are still expected in the range of $115-$135 million. Revenues for the Energy Storage segment continue to be expected between $35 million and $45 million.

ORA anticipates annual adjusted EBITDA in the band of $515-$545 million.

Zacks Rank

Ormat 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 first-quarter adjusted earnings of 35 cents per share, highlighting a 74.5% decline from $1.37 reported in the prior-year quarter. The figure also lagged the Zacks Consensus Estimate of earnings of 42 cents per share by 16.7%.

ENPH’s revenues of $263.3 million missed the consensus estimate of $284 million. The top line also declined 63.7% from the prior-year quarter’s reported figure of $726 million.

NextEra Energy Partners, LP (NEP - Free Report) recorded first-quarter operating earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 12 cents by 525%. In the year-ago quarter, the firm reported a loss of 17 cents per share.

The firm’s operating revenues of $257 million missed the consensus estimate of $346 million by 25.7%. The figure, however, increased 4.9% from $245 million registered in the prior-year period.

First Solar, Inc. (FSLR - Free Report) reported first-quarter 2024 earnings of $2.20 per share, which increased a massive 450% from 40 cents reported in the prior-year quarter. The figure beat the Zacks Consensus Estimate of earnings of $1.90 per share by 15.8%.

First Solar’s net sales were $794.1 million, which surpassed the Zacks Consensus Estimate of $715 million by 11.1%. The top line also improved 44.8% from the year-ago quarter’s $548.3 million.

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