Earnings Beat: Ormat Technologies, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Ormat Technologies, Inc. (NYSE:ORA) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 5.6% to hit US$234m. Ormat Technologies reported statutory earnings per share (EPS) US$0.46, which was a notable 16% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Ormat Technologies' nine analysts is for revenues of US$959.1m in 2025. This would reflect a satisfactory 5.8% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$2.16, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$951.5m and earnings per share (EPS) of US$2.13 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Ormat Technologies

There were no changes to revenue or earnings estimates or the price target of US$93.40, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ormat Technologies at US$105 per share, while the most bearish prices it at US$76.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Ormat Technologies' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ormat Technologies to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$93.40, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ormat Technologies analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Ormat Technologies has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.