Ormat Technologies (NYSE:ORA) Posts Earnings Results, Beats Expectations By $0.38 EPS

Key Points

• Ormat Technologies beat earnings expectations, reporting Q1 EPS of $1.30 versus the $0.92 consensus estimate. Revenue also came in ahead of forecasts at $403.9 million.
• Growth was strong year over year, with revenue up 75.8% from the same quarter last year and adjusted EBITDA rising 29.7% to $194.9 million. The company’s profitability also improved, with a net margin of 10.97%.
• The stock edged lower despite the strong results, falling 0.7% on Friday to $121.70. Ormat also declared a quarterly dividend of $0.12 per share, and analysts currently rate the stock a consensus Moderate Buy with an average price target of $132.

Ormat Technologies (NYSE:ORA - Get Free Report) posted its quarterly earnings data on Wednesday. The energy company reported $1.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.92 by $0.38, FiscalAI reports. The company had revenue of $403.91 million during the quarter, compared to the consensus estimate of $349.17 million. Ormat Technologies had a net margin of 10.97% and a return on equity of 6.65%. The firm's revenue was up 75.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.68 EPS.

Ormat Technologies Trading Down 0.7%

Shares of ORA traded down $0.82 during trading hours on Friday, hitting $121.70. The company had a trading volume of 861,635 shares, compared to its average volume of 816,627. Ormat Technologies has a 52-week low of $70.42 and a 52-week high of $132.58. The company has a quick ratio of 0.75, a current ratio of 0.81 and a debt-to-equity ratio of 0.79. The stock's 50 day moving average price is $111.26 and its 200 day moving average price is $113.47. The firm has a market cap of $7.48 billion, a P/E ratio of 59.08, a P/E/G ratio of 5.03 and a beta of 0.80.

Ormat Technologies Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th will be issued a $0.12 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $0.48 annualized dividend and a dividend yield of 0.4%. Ormat Technologies's payout ratio is currently 23.30%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Jefferies Financial Group lowered Ormat Technologies from a "buy" rating to a "hold" rating and lifted their price target for the stock from $125.00 to $130.00 in a research note on Friday, February 13th. Oppenheimer reiterated an "outperform" rating and set a $144.00 price objective on shares of Ormat Technologies in a research report on Friday. UBS Group raised their price objective on Ormat Technologies from $143.00 to $152.00 and gave the company a "buy" rating in a report on Friday. Citigroup upped their target price on Ormat Technologies from $110.00 to $128.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 18th. Finally, TD Cowen reduced their price target on shares of Ormat Technologies from $131.00 to $125.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $132.00.

Insiders Place Their Bets

In related news, insider Jessica Woelfel sold 2,359 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $105.16, for a total transaction of $248,072.44. Following the transaction, the insider directly owned 3,433 shares in the company, valued at $361,014.28. This trade represents a 40.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last three months, insiders sold 3,364 shares of company stock worth $353,621. Corporate insiders own 0.56% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Compound Planning Inc. bought a new stake in Ormat Technologies during the 4th quarter valued at $650,000. Invesco Ltd. increased its position in shares of Ormat Technologies by 3.4% in the fourth quarter. Invesco Ltd. now owns 388,496 shares of the energy company's stock valued at $42,917,000 after acquiring an additional 12,914 shares during the period. Mercer Global Advisors Inc. ADV raised its stake in shares of Ormat Technologies by 2.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 32,272 shares of the energy company's stock valued at $3,565,000 after acquiring an additional 858 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Ormat Technologies during the fourth quarter valued at about $207,000. Finally, Cinctive Capital Management LP purchased a new stake in shares of Ormat Technologies during the fourth quarter worth about $324,000. Institutional investors own 95.49% of the company's stock.

Key Stories Impacting Ormat Technologies

Here are the key news stories impacting Ormat Technologies this week:

• Positive Sentiment: Ormat posted Q1 adjusted EPS of $1.30, well above the $0.92 consensus estimate, while revenue climbed 75.8% year over year to $403.9 million. The beat was driven by stronger performance in energy storage and products, plus supportive merchant pricing. Article Title
• Positive Sentiment: Adjusted EBITDA rose 29.7% year over year to $194.9 million, reinforcing the view that profitability improved meaningfully in the quarter. Article Title
• Positive Sentiment: JPMorgan raised its price target on ORA to $123 from $106, signaling increased confidence in the stock’s near-term valuation even while keeping a neutral rating. Article Title
• Neutral Sentiment: The company also declared a quarterly dividend of $0.12 per share, which supports the investment case but is not a major catalyst by itself.
• Negative Sentiment: Despite the strong quarter, insider trading and some institutional filings show more selling than buying over the past six months, which may temper enthusiasm around the stock’s longer-term ownership trend. Article Title

About Ormat Technologies

Ormat Technologies, Inc is a leading renewable energy company specializing in geothermal and recovered energy power plants. Through its vertically integrated business model, Ormat designs, develops, engineers, constructs, owns and operates clean energy projects worldwide. The company's core technology centers on the Organic Rankine Cycle (ORC), which converts heat from geothermal sources or industrial waste streams into sustainable electricity without combustion.

Ormat's offering includes turnkey power plant solutions, proprietary ORC equipment and ongoing operations and maintenance services.

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