Why Shares of PowerSecure International, Inc. Popped Today

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 PowerSecure International, (NYSE: POWR  ) jumped 11% today after the company reported earnings.

So what: Revenue was up 57.4% to $73.6 million, topping estimates of $69.2 million. On the bottom line, net income was up 43% to $4.4 million or an adjusted $0.13 per share, topping analyst estimates by four cents.  

Now what: Acquisitions of ESCO and Solais helped push revenue higher, but the fact that the acquisitions are performing well so quickly is a strong sign. This was the first year that both distributed generation and utility infrastructure topped $100 million in revenue, and $248 million in backlog bodes well for next year. Given the momentum and huge potential market in energy efficiency I think the stock still has lots of upside potential even after today's pop.

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