Ormat Technologies Inc.’s (ORA - Free Report) second-quarter 2019 adjusted earnings per share (EPS) came in at 40 cents, which surpassed the Zacks Consensus Estimate of 31 cents by 2%. The bottom line also improved 25% from 32 cents registered in the prior-year quarter.
Including a one-time tax benefit, the company reported GAAP earnings of 66 cents per share against a loss of a penny incurred in the year-ago quarter.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as gross profit generated in the quarter under review.
Ormat Technologies’ second-quarter revenues of $184.1 million exceeded the Zacks Consensus Estimate of $176 million by 4.6%. The top line also improved 3.2% on a year-over-year basis, particularly driven by revenue growth at its Electricity segment.
Electricity Segment: Revenues at this segment increased 5.6% year over year to $129.1 million from $122.2 million. The upside was primarily driven by the expanded operations at McGuinness Hills and Olkaria. Also, contributions from the USG acquisition provided a boost to this unit’s top line.
Product Segment: Revenues at this segment decreased 5.3% year over year to $52 million from $54.9 million.
Other Segment: Revenues at this division amounted to $3 million compared with $1.2 million in the prior-year quarter.
In the reported quarter, Ormat Technologies’ total cost of revenues was $118.9 million, down 1.6% year over year.
The company’s total operating expenses totaled $18.3 million, down 12.3% year over year.
Consequently, operating income surged 28% year over year to $46.9 million.
Interest expenses were $21.6 million, up 35.8% year over year.
Ormat Technologies had cash and cash equivalents of $110.7 million as of Jun 30, 2019, compared with $98.8 million as of Dec 31, 2018.
Total liabilities amounted to $1.69 billion as of Jun 30, 2019, compared with $1.67 billion as of Dec 31, 2018.
Ormat Technologies continues to expect 2019 total revenues in the $720-$742 million band. The Zacks Consensus Estimate for the same, pegged at $733.1 million, lies above the midpoint of the company’s guided range.
Segment-wise, the company still expects revenues at the Electricity segment to be in the range of $530-$540 million, excluding any impact from Puna during 2019. Likewise, the company’s Product segment revenues are expected to be $180-$190 million.
Furthermore, annual adjusted EBITDA for 2019 is anticipated in the range of $375-$385 million compared with $370-$380 million projected earlier, with no Puna-related EBITDA.
Ormat Technologies has a Zacks Rank #4 (Sell).
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