The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ormat Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Ormat Technologies reported revenue of $136.1 million. The six analysts polled by S&P Capital IQ foresaw a top line of $127.5 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $110.8 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 $0.23. The five earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS were -$0.01 for Q3 versus $0.02 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 23.9%, 840 basis points worse than the prior-year quarter. Operating margin was 15.8%, 600 basis points worse than the prior-year quarter. Net margin was -0.4%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $112.0 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $500.5 million. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 430 members out of 453 rating the stock outperform, and 23 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Ormat Technologies a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ormat Technologies is outperform, with an average price target of $23.25.
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