Sunday, April 6, 2014

Ormat Technologies Beats on EPS But GAAP Results Lag

Ormat Technologies (NYSE: ORA  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ormat Technologies met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Ormat Technologies recorded revenue of $121.7 million. The six analysts polled by S&P Capital IQ hoped for revenue of $121.1 million on the same basis. GAAP reported sales were 8.0% lower than the prior-year quarter's $132.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The five earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. Non-GAAP EPS of $0.26 for Q1 were 44% higher than the prior-year quarter's $0.18 per share. GAAP EPS were -$0.04 for Q1 compared to $0.17 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.8%, 730 basis points worse than the prior-year quarter. Operating margin was 7.0%, much worse than the prior-year quarter. Net margin was -1.6%, 760 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

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Looking ahead
Next quarter's average estimate for revenue is $128.1 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $524.0 million. The average EPS estimate is $0.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 423 members out of 446 rating the stock outperform, and 23 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $22.88.

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