Why EnerNOC’s Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EnerNOC (NASDAQ: ENOC  ) jumped 20% today, after the company reported fourth quarter earnings.

So what: Revenue was up 58% from a year ago, to $42.3 million, and net loss was $25.8 million, or $0.76 per share on a non-GAAP basis. Both numbers were better than expected, but investors got very excited about an estimate of a $0.60 to $0.85 profit for 2013. 

Now what: EnerNOC's results are all over the map, and a heat wave or cool spell here and there can swing results quarter to quarter, making predictions very difficult. What we know right now is that revenue was down in 2012, and the company reported an $0.84 per share loss for the full year. Until I see consistent profits, I think this stock is too risky to jump into, even if things are pointing up right now.

Interested in more info on EnerNOC? Add it to your watchlist by clicking here.


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  • Report this Comment On February 15, 2013, at 12:15 AM, thompsonpsu wrote:

    Most revenue is already guaranteed for 2013. Prices at which EnerNOC has secured capacity was set 3 years ago. For the 2013 PJM RPM Auction, Capacity prices for Demand Response cleared at $245/MW-day in the highest priced area. To put that in perspective, those prices were $110 and $140 in 2011 and 2012, respectively. Again, these are revenues that are already secured years in advance. Fluctuations in revenue for ENOC will only result from participation in the Economic Energy Market (completely separate), and was already stated in the Q4 conference call that these are not even included in revenue guidance. Anything made in this market is bonus money. I disagree with your article, as revenue in these markets are made under contracts that occurred years ago.

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