Ormat Technologies Inc.’s (NYSE:ORA) first-quarter 2019 earnings per share (EPS) came in at 51 cents, which surpassed the Zacks Consensus Estimate of 50 cents by 2%. The bottom line, however, deteriorated 62.5% from the prior-year quarter’s $1.36 per share.
The year-over-year decline in earnings can be attributed to a one-time tax income of $44.4 million that the company recorded in the first quarter of 2018.
Revenues
In the quarter under review, Ormat Technologies generated revenues of $199 million, which exceeded the Zacks Consensus Estimate of $184 million by 8.1%. The top line also improved 8.2% on a year-over-year basis, driven by revenue growth across all its segments.
Segment Revenues
Electricity Segment: Revenues at this segment increased 7.9% year over year to $142.9 million from $128 million. The upside was primarily driven by the expanded operations at McGuinness Hills and Olkaria. Also, the USG acquisition provided a boost to this unit’s topline.
Product Segment: Revenues at this segment increased 7.1% year over year to $52.1 million from $48.7 million.
Other Segment: Revenues at this division amounted to $4 million compared with $2.9 million in the prior-year quarter.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses totaled $20.5 million, up 8.9% year over year.
The company’s total cost of revenues was $124.9 million, up12.8% year over year.
Interest expenses were $21.2 million, up 48% year over year.
Financial Condition
Ormat Technologies had cash and cash equivalents of $79.4 million as of Mar 31, 2019, compared with $98.8 million as of Dec 31, 2018.
Total long-term debt was $1,141.3 million as of Dec 31, 2019, compared with $1,040.9 million as of Dec 31, 2018.
Guidance 2019
Ormat Technologies continues to expect 2019 total revenues of $720-$742 million. The Zacks Consensus Estimate for the same, pegged at $730 million, lies just below the midpoint of the company’s guided range.
Segment wise, the company still expects electricity segment revenues 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. It also anticipates annual adjusted EBITDA view of $370-$380 million for 2019, with no Puna-related EBITDA.
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.
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