Why PowerSecure'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 energy service provider PowerSecure International (UNKNOWN: POWR.DL  ) jumped as much as 18% in early trading after reporting earnings.

So what: Revenues jumped 85% from a year ago to $70.2 million and net income rose from $1.6 million to $2.1 million, or $0.11 per share. On a non-GAAP basis, which analysts compare to, the company earned $0.12 per share, $0.02 above estimates.  

Now what: The company hit an all-time high in backlog as well, which bodes well for future revenue and earnings. The stock is trading at a lofty 34 times this year's estimates, but two of the last three quarters it has beaten estimates, and with strong growth that's not a terrible value. I'd like to see a pullback before jumping in and more evidence of expanding margins after recent acquisitions.

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

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2586682, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:15:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,206.87 -21.43 -0.12%
S&P 500 2,155.87 -4.06 -0.19%
NASD 5,297.38 -8.33 -0.16%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/9/2016 4:05 PM
POWR.DL $0.00 Down +0.00 +0.00%
PowerSecure Intern… CAPS Rating: **