The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ormat Technologies beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins improved, net margins dropped.
Ormat Technologies reported revenue of $123.7 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $110.6 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $92.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.95. The nine earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. GAAP EPS were -$0.95 for Q4 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 720 basis points better than the prior-year quarter. Operating margin was 14.0%, 940 basis points better than the prior-year quarter. Net margin was -34.8%, 3,960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.6 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $463.5 million. The average EPS estimate is $0.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 445 members out of 470 rating the stock outperform, and 25 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Ormat Technologies a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ormat Technologies is hold, with an average price target of $22.11.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.