Ormat Technologies Inc.’s (NYSE:) third-quarter 2018 adjusted earnings per share (EPS) came in at 31 cents, which missed the Zacks Consensus Estimate of 44 cents by 29.6%. Earnings also declined 39.2% from the prior-year quarter.
Barring one-time items, the company’s GAAP earnings were 21 cents per share compared with 47 cents in the year-ago quarter.
Revenues
In the quarter under review, Ormat Technologies generated revenues of $166.5 million, which missed the Zacks Consensus Estimate of $176 million by 5.4%. However, the top line improved 5.9% on a year-over-year basis.
Segment Revenues
Electricity Segment: Revenues increased 5.4% year over year to $116.9 million from $110.9 million. The increase was primarily attributable to the Platanares, Tungsten Mountain and Olkaria III expansion projects along with the U.S. Geothermal acquisition.
Product Segment: Segment revenues increased 7.9% year over year to $48.4 million from $44.9 million.
Other Segment: Revenues for this division stood at $1.1 million compared with $1.4 million in the prior-year quarter.
Operational Update
In the reported quarter, Ormat Technologies’ total operating expenses were $22.89 million, up 50.4% year over year.
The company’s total cost of revenues was $117.7 million, up 20% year over year.
Interest expenses were $18.7 million, up approximately 60% on a year-over-year basis.
Ormat Technologies, Inc. Price, Consensus and EPS Surprise
Ormat Technologies, Inc. Price, Consensus and EPS Surprise | Ormat Technologies, Inc. Quote
Highlights of the Quarter
In the quarter, Ormat completed the closing of the first tranche under the previously announced finance agreement, totaling $124.7 million for the 35 MW Platanares geothermal power plant in Honduras.
The company also opted out of the Galena 2 PPA with NV Energy Inc., and reported a one-time $5-million termination fee, recorded in selling and marketing expenses.
Financial Condition
Ormat Technologies had cash and cash equivalents of $72 million as of Sep 30, 2018 compared with $47.8 million as of Dec 31, 2017.
Total long-term debt was $959.6 million as of Sep 30, 2018 compared with $804.3 million as of Dec 31, 2017.
Guidance
Ormat Technologies has reaffirmed its 2018 guidance for revenues of $698-$722 million. Segment wise also, the company has reiterated its guidance for the Electricity segment revenues between $500 million and $510 million in 2018.
Likewise, the guidance for its Product segment revenues also remains unchanged at $190-$200 million. The company has also reaffirmed its adjusted EBITDA view of $370-380 million for 2018.
Zacks Rank
Ormat Technologies currently carries a Zacks Rank #4 (Sell).
Recent Oils-Energy Releases
Covanta Holding Corporation (NYSE:) incurred third-quarter 2018 loss of 4 cents per share, missing the Zacks Consensus Estimate for earnings of 7 cents by 157.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Matador Resources Company (NYSE:) reported third-quarter 2018 adjusted earnings of 48 cents per share, beating the Zacks Consensus Estimate of 37 cents.
Marathon Petroleum Corporation (NYSE:) reported earnings per share of $1.62 in the third quarter of 2018, missing the Zacks Consensus Estimate of $1.68.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure
here or
remove ads
.
