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Ormat Technologies, Inc. (NYSE:ORA) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Ormat Technologies reported US$880m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.04 beat expectations, being 9.0% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Ormat Technologies
Taking into account the latest results, the most recent consensus for Ormat Technologies from eight analysts is for revenues of US$961.6m in 2025. If met, it would imply a decent 9.3% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$2.02, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$965.2m and earnings per share (EPS) of US$2.08 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$83.78, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ormat Technologies, with the most bullish analyst valuing it at US$106 and the most bearish at US$75.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Ormat Technologies' growth to accelerate, with the forecast 9.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.5% annually. Ormat Technologies is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.