Ormat Technologies (ORA) Q4 Earnings Beat, Revenues Down Y/Y
Shares of Ormat Technologies Inc. ORA decline 13.1% to reach $90.35 on Feb 25, reflecting investors’ skepticism following the company's fourth-quarter results.
The company’s fourth-quarter 2020 adjusted earnings per share (EPS) came in at 39 cents, exceeding the Zacks Consensus Estimate of 34 cents by 14.7%. Earnings also soared 62.5% from the prior-year quarter’s 24 cents per share.
For 2020, Ormat Technologies’ operating EPS came in at $1.65, down 4.1% from the prior-year quarter’s $1.72.
In the fourth quarter, Ormat Technologies generated revenues of $179.4 million, which missed the Zacks Consensus Estimate of $183 million by 1.8%. Also, the top line declined 6.8% on a year-over-year basis, primarily led by lower revenues from its Product segment.
For 2020, Ormat Technologies’ revenues summed $705.3 million, down 5.5% from the prior-year quarter’s $746 million.
Electricity Segment: Revenues increased 1.3% year over year to $146.2 million from the prior-year quarter’s $144.4 million. The increase was mainly attributable to Steamboat Hills enhancement and repowering plant in Ormesa, offset by curtailments in Olkaria.
Product Segment: Segment revenues plunged 37.5% year over year to $27.4 million from the year-earlier quarter’s $43.8 million. The decline in revenues was due to a lower backlog affected by the COVID-19 pandemic.
Energy Storage and Management Services: Revenues in this division amounted to $5.8 million, increasing 28.3% from the prior-year quarter. The increase was mainly driven by the addition of the Rabbit Hill project in Texas and the acquired Pomona asset in California.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
In the December-end quarter, Ormat Technologies’ total operating expenses were $21.8 million, up 9% year over year.
Operating income during the quarter totaled $53.2 million compared with $54.5 million registered in the year-ago period.
The company’s total cost of revenues in the fourth quarter was $104.3 million compared to $117.9 million in the year-ago period.
Interest expenses were $19.1 million during the quarter, up 8.5% on a year-over-year basis.
Ormat Technologies had cash and cash equivalents of $448.2 million as of Dec 31, 2020, compared with $71.2 million as of Dec 31, 2019.
Total long-term debt was $1,377.2 million as of Dec 31, 2020, compared with $1,011.9 million as of Dec 31, 2019.
Ormat Technologies projects full-year 2021 total revenues of $640-$675 million, with electricity segment revenues estimated at $570-$580 million. Likewise, the company’s Product segment revenues are expected to be $50-$70 million. The Zacks Consensus Estimate for the same is pegged at $690.5 million, higher than the company’s guided range.
The company also anticipates annual adjusted EBITDA of $400-410 million for 2021. It expects annual adjusted EBITDA attributable to minority interest to be approximately $32 million.
Ormat Technologies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Oil-Energy Releases
CNX Resources Corporation CNX reported earnings of 21 cents for the fourth quarter, which surpassed the Zacks Consensus Estimate of 18 cents per share.
Murphy Oil Corporation MUR reported a loss of 9 cents for the fourth quarter, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents.
Continental Resources CLR reported a loss of 23 cents for the fourth quarter, which was wider than the Zacks Consensus Estimate of a loss of 10 cents.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CNX Resources Corporation. (CNX): Free Stock Analysis Report
Murphy Oil Corporation (MUR): Get Free Report
Ormat Technologies, Inc. (ORA): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Latest Markets Videos
- Best Stocks To Buy Now? 4 Tech Stocks To Watch This Week
- Apple's (AAPL) Predictable Fall Will Be Followed by A Predictable Recovery
- Best Cryptocurrency Stocks To Invest In Right Now As Bitcoin Hits $50,000? 5 To Check Out
- The Trouble at Evergrande May Not Spread But it Could Still Prompt a Big Drop in Stocks