Ormat Technologies (ORA) Down 5.8% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Ormat Technologies (ORA). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Ormat Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ormat Technologies Q3 Earnings Beat Estimates, Revenues Rise Y/YOrmat reported third-quarter 2024 adjusted earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 30 cents by 40%. However, the bottom line declined 10.6% from 47 cents in the year-ago quarter.The company reported GAAP earnings of 36 cents per share compared with 59 cents in the year-ago quarter.The year-over-year deterioration can be attributed to the absence of tax income that the company registered in the third quarter of 2023 due to changes in Kenya tax laws back then.ORA’s Total RevenuesORA generated revenues of $211.8 million, which came almost in line with the Zacks Consensus Estimate. The top line rose 1.8% year over year, driven by higher revenues from its electricity segment.ORA’s Segmental PerformanceElectricity: Revenues in this segment amounted to $164.6 million, up 4.7% year over year. This upside was primarily driven by revenue contributions from ORA’s acquired Enel assetsand higher generation and pricing at Puna.Product: This segment’s revenues declined 6.2% to reach $37.4 million from the year-ago quarter’s level. The decline was due to the timing of revenue recognition during the third quarter.Energy: Revenues in this division amounted to $9.8 million, down 11.1% from the prior-year quarter’s figure. This was driven by the absence of higher energy rates realized in ERCOT during the previous year as the result of an inclement weather event.ORA’s Operational UpdateOrmat’s total operating expenses were $23.2 million, which increased 3.3% from the year-ago quarter’s level.The operating income declined 5% year over year to $35.7 million.The total cost of revenues was $152.9 million, up 3.3% year over year.Net interest expenses were $34.8 million, up 39% year over year.Ormat’s Financial ConditionORA had cash and cash equivalents of $88.1 million as of Sept. 30, 2024, compared with $195.8 million as of Dec. 31, 2023.ORA’s 2024 GuidanceThe company updated its guidance for 2024. It now expects to generate revenues in the range of $875-$893 million, narrower than the prior guidance of $875-$910 million. The Zacks Consensus Estimate for revenues is pegged at $889.2 million, higher than the mid-point of the newly guided range.Revenues for the Electricity segment are now anticipated to be in the band of $710-$715 million compared with the prior expectation of $710-$720 million. Product segment revenues are now expected to be in the range of $130-$138 million compared with the earlier projection of $130-$145 million. ORA now expects revenues from the Energy Storage segment between $35 million and $40 million compared with the earlier projection of $35-$45 million.The annual adjusted EBITDA is projected to be in the band of $540-$555 million, up from the prior guidance of $520-$550 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -29.21% due to these changes.VGM ScoresCurrently, Ormat Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ormat Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerOrmat Technologies belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Cheniere Energy Partners, L.P. (CQP), has gained 17.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Cheniere Energy Partners, L.P. reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $0.84 for the same period compares with $0.60 a year ago.For the current quarter, Cheniere Energy Partners, L.P. is expected to post earnings of $1.09 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.Cheniere Energy Partners, L.P. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Ormat Technologies, Inc. (ORA): Free Stock Analysis Report Cheniere Energy Partners, L.P. (CQP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks