Ormat provided a disappointing forecast; Decreases by 7% – the capital market

The dual Ormat company

Ormo Techno
-7.44%

Base:33,990

opening:32,150

High:32,250

low:31,150

change:29,370,062

Page Quote News Graphs Company Profile Recommendations


More articles on the subject:




(NYSE: ORA) declines 7% in Tel Aviv trading in the shadow of a disappointing forecast for the coming year alongside reports showing positive bottom-line data and a dividend announcement. Analysts had revenue of $ 707 million, and the lower limit of forecasts (687 million) was higher than the upper limit in Ormat’s forecast.

In the fourth quarter of 2020, Ormat posted earnings of $ 20.7 million ($ 0.39 per share), an increase of 62.5% compared to $ 12.6 million ($ 0.24 per share) in the corresponding quarter. Ormat beat analysts’ forecast of $ 0.34 per share. The company posted $ 179.4 million in the quarter, missing analysts’ forecasts for revenue of $ 182.8 million. It is also a decrease of about 6.8% compared to the corresponding quarter figure of $ 192.4 million.

The Electricity Division’s revenue for the quarter remained at a static level of $ 146.2 million, an increase of only 1.3% compared to the corresponding quarter. Sales of the products division fell by 37% in the quarter to $ 27.4 million, while the energy storage division grew by 36.2% and the company entered $ 5.8 million. Adjusted EBITDA for the quarter increased by 7% to $ 109 million compared to $ 102 million in the corresponding quarter.

For the full year, earnings fell 3% to $ 85.5 million ($ 1.65 per share) compared to $ 88.1 million last year – according to the consensus forecast. Revenue was $ 705 million, down 5.5% from $ 746 million in 2019. Here, too, the company missed the $ 710 million consensus forecast for revenue. Adjusted EBITDA for the quarter was $ 420 million, an increase of about 9.3% compared to $ 384.3 million in 2019.

The company is engaged in the development and production of turbines for geothermal power plants, for itself and for other companies. In addition to the construction, operation and sale of electricity from geothermal power plants owned by it and the provision of energy storage services and energy consumption management.

Surprisingly, Ormat was not an integral part of the solar energy craze in 2020 when the company’s stock rose only about 13%. This is while solar companies have climbed tremendously. From the beginning of the year, the stock climbed at a peak of about 37% until the correction came, before the declines with the publication of the reports, the company completed a 13% increase from the beginning of the year and traded at a value of $ 5.75 billion.