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Ormat Technologies (ORA) Q2 Earnings Miss, Revenues Top

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Ormat Technologies Inc.’s (ORA - Free Report) second-quarter 2018 adjusted earnings per share (EPS) came in at 32 cents, missing the Zacks Consensus Estimate of 48 cents by 33.3%. Earnings also declined 44.8% from the prior-year quarter figure.

Barring one-time items, the company incurred a GAAP loss of a penny per share, in the quarter, against earnings of 17 cents in the year-ago quarter.

Revenues

In the quarter under review, Ormat Technologies generated revenues $178.3 million, beating the Zacks Consensus Estimate of $176 million by 1.3%. However, the top line declined 0.6% on a year-over-year basis.

Segment Revenues

Electricity Segment: Revenues for the segment increased 10.2% year over year to $122.2 million in the reported quarter from $110.9 million. The increase was primarily driven by the commencement of new power plants and the consolidation of USG.

Product Segment: Revenues for the segment decreased 18.7% year over year to $54.9 million from $67.6 million.

Other Segment: Revenues here stood at $1.2 million in the second quarter of 2018 compared with $0.9 million in the prior-year quarter.

Ormat Technologies, Inc. Price, Consensus and EPS Surprise

Ormat Technologies, Inc. Price, Consensus and EPS Surprise | Ormat Technologies, Inc. Quote

Operational Update

In the reported quarter, Ormat Technologies’ total operating expenses were $20.8 million, up 20.1% year over year.

In the quarter under review, the company’s total cost of revenues was $120.8 million, up 11% year over year.

Interest expenses were $15.8 million, up approximately 9% on a year-over-year basis.

Highlights of the Quarter

In the reported quarter, Ormat Technologies closed the acquisition of U.S. Geothermal, which thereby broadens and diversifies the company’s operations in the United States, further expanding its presence into the Idaho and Oregon region.

Financial Condition

Ormat Technologies had cash and cash equivalents of $66.7 million as of Jun 30, 2018 compared with $47.8 million as of Dec 31, 2017.

Total long-term debt was 969.6 million as of Jun 30, 2018 compared with $804.3 million as of Dec 31, 2017.

Guidance

Ormat Technologies expects to generate total revenues for 2018 in the range of $698-$722 million, lower than the previous guidance of $711-$735 million.

Segment wise, the company expects revenues for the Electricity segment to be in between $500 million and $510 million in 2018, lower than the previously mentioned guidance of $523-$533 million. However, the company has increased its guidance for the Product segment revenues to the range of $190-$200 million from the earlier range of $180-$190 million.

Ormat Technologies also raised its adjusted EBITDA view to the range of $370-380 million for 2018 from the prior range of $368-$378 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 Oils-Energy Releases

Covanta Holding (CVA - Free Report) incurred second-quarter 2018 loss of a penny per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents by 90%. The loss was also narrower than the year-ago quarter’s loss of 22 cents.

Gulfport Energy (GPOR - Free Report) reported second-quarter adjusted net income per share of 33 cents, beating the Zacks Consensus Estimate of 28 cents.

Anadarko Petroleum (APC - Free Report) reported second-quarter 2018 earnings of 54 cents per share, missing the Zacks Consensus Estimate of 60 cents by 10%. In the year-ago quarter, the company had however, incurred a loss of 77 cents.

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