Geothermal and recovered energy power company Ormat Technologies, Inc. (ORA) on Wednesday reported an 32% year-over-year increase in profit for the second quarter, boosted by foreign currency translation gains as well as a 25% revenue growth, aided by a more than two-fold surge in revenues from the product segment. Earnings per share for the quarter increased 25%, and topped analysts' expectations by seven cents. The company also raised its revenue forecast for fiscal 2009.
The Reno, Nevada-based electric utility company reported net income of $16.05 million or $0.35 per share for the second quarter, 25% higher than $12.16 million or $0.28 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose 24.9% to $100.24 million from $80.22 million in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $92.46 million.
The company operates in two segments - Electricity and Products. Electricity segment operates geothermal and recovered energy-based power plants, and sells electricity. The Products segment sells equipment for geothermal and recovered energy-based electricity generation.
Electricity revenues for the second quarter edged down 2% to $60.56 million from $61.77 million in the year-ago quarter. Revenues for the products segment for the quarter climbed 115.1% to $39.67 million from $18.45 million in the prior-year quarter.
Operating income for the second quarter rose to $16.75 million from $14.28 million in the prior-year quarter. Gross margin was $28.04 million, up from $23.01 million in the year-ago quarter.
Research and development expenses for the quarter soared to $2.49 million from $0.79 million in the comparable quarter a year ago. Selling and marketing expenses was $3.22 million, up from $2.02 million in the year-ago quarter.
Separately, Ormat also announced a quarterly cash dividend of $0.06 per share payable on August 27, to shareholders of record as of the close of business on August 18, 2009.
For the first six months, the company reported net income of $30.64 million or $0.67 per share, higher than $22.23 million or $0.52 per share in the prior-year period.
Total revenues for the year-to-date period surged 33.8% to $200.12 million from $149.61 million in the same period last year.
Looking ahead to fiscal 2009, based on the second quarter results, Ormat raised its full year revenue forecast to a range of $382 million to $400 million from the prior guidance of $375 million to $395 million. Analysts currently expect the company to report revenues of $390.69 million for the full year 2009.
Further, Electricity segment revenues are now anticipated between $252 million and $260 million, down from the prior estimate of $265 million and $275 million. Product segment revenue forecast was also raised to between $130 million and $140 million from the prior range of $110 million to $120 million.
ORA closed Wednesday's regular trading session at $40.33, up $0.04 or 0.10% on a volume of 0.28 million shares, lower than the three-month average volume of 0.31 million shares.
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