Ormat Technologies Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Ormat Technologies Inc. (ORA) reported a 1.5% increase in share price to $83.13 following its third-quarter 2024 results, with adjusted earnings per share of 42 cents, surpassing the Zacks Consensus Estimate of 30 cents by 40% but down 10.6% from 47 cents in the same quarter last year [1][2] Financial Performance - GAAP earnings were reported at 36 cents per share, a decline from 59 cents in the year-ago quarter, primarily due to the absence of tax income from changes in Kenya's tax laws [2] - Total revenues reached $211.8 million, nearly matching the Zacks Consensus Estimate, with a year-over-year increase of 1.8%, driven by higher revenues from the electricity segment [3] Segmental Performance - Electricity segment revenues amounted to $164.6 million, up 4.7% year over year, attributed to contributions from acquired Enel assets and increased generation and pricing at Puna [4] - Product segment revenues decreased by 6.2% to $37.4 million due to timing of revenue recognition [4] - Energy segment revenues fell 11.1% to $9.8 million, impacted by the absence of higher energy rates from the previous year [5] Operational Update - Total operating expenses were $23.2 million, a 3.3% increase from the previous year, while operating income declined 5% to $35.7 million [6] - Total cost of revenues was $152.9 million, up 3.3% year over year, with net interest expenses rising 39% to $34.8 million [6] Financial Condition and Guidance - As of September 30, 2024, ORA had cash and cash equivalents of $88.1 million, down from $195.8 million at the end of 2023 [7] - The company updated its 2024 revenue guidance to a range of $875-$893 million, narrower than the previous range of $875-$910 million, with the Zacks Consensus Estimate at $889.2 million [7][8] - Electricity segment revenues are now expected between $710-$715 million, while product segment revenues are projected at $130-$138 million [8] - Annual adjusted EBITDA is projected to be in the range of $540-$555 million, an increase from the prior guidance of $520-$550 million [9] Zacks Rank - Ormat currently holds a Zacks Rank 3 (Hold) [10]