Ormat Technologies (ORA) Q2 Earnings Top, Revenues Rise Y/Y

Shares of Ormat Technologies Inc. ORA rose 3.8% to reach $91.15 on Aug 8, reflecting investors’ optimism following the company's second-quarter 2022 results.

The company’s second-quarter adjusted earnings per share came in at 22 cents, which surpassed the Zacks Consensus Estimate of 21 cents by 4.8%.

Ormat reported GAAP earnings of 20 cents per share compared with 23 cents generated in the year-ago quarter.

The year-over-year decline can be attributed to an after-tax loss related to foreign currency hedging.

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

Revenues

In the quarter under review, ORA generated revenues of $169.1 million, which exceeded the Zacks Consensus Estimate of $160 million by 5.5%. Moreover, the top line increased 15.1% on a year-over-year basis, driven by higher revenues from all of its segments.

Segment Revenues

Electricity Segment: Revenues in this segment amounted to $151.2 million in the second quarter, which rose 12.9% year over year.

Product Segment: Revenues in this segment surged 40.2% to $10.4 million.

Energy Storage Segment: Revenues in this division amounted to $7.5 million, up 33.1% 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 second quarter of 2021.

The company’s operating income surged 35% year over year to $38.6 million in the second quarter.

The company’s total cost of revenues was $111.5 million, up 17.4% year over year.

Net interest expenses were $20.4 million, which increased 9.6% year over year.

Financial Condition

Ormat Technologies had cash and cash equivalents of $263.4 million as of Jun 30, 2022, compared with $239.3 million as of Dec 31, 2021.

Guidance

Ormat Technologies still projects to generate revenues in the range of $710-$735 million in 2022.

Adjusted electricity segment revenues are still 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 continues to anticipate 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, Inc. ENPH reported second-quarter 2022 adjusted earnings of $1.07 per share, which improved a solid 101.9% from 53 cents reported in the prior-year quarter.

Enphase Energy’s second-quarter revenues of $530.2 soared 67.7% from the year-ago quarter’s $316.1 million. For the third quarter of 2022, ENPH expects revenues in the range of $590-$630 million.

First Solar, Inc. FSLR reported second-quarter 2022 earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 30 cents by 73.3%. However, the bottom line declined from the prior-year quarter’s earnings of 77 cents per share.

First Solar’s second-quarter sales were $621 million, which beat the Zacks Consensus Estimate of $599 million by 3.7%.

SunPower Corporation SPWR reported second-quarter 2022 adjusted earnings of 3 cents per share. The bottom line marked a deterioration from the year-ago quarter’s earnings of 7 cents per share.

SunPower’s adjusted revenues came in at $414.1 million, while its GAAP revenues were $417.8 million. Revenues surpassed the Zacks Consensus Estimate of $363 million by 14%.

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