Why Shares of EnerNOC, Inc. Sold Off Early 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 demand response company EnerNOC, (NASDAQ: ENOC  ) fell as much as 12% today after reporting earnings. Shares recovered late in trading, and ended the day with a 3.5% loss.

So what: First-quarter revenue was up 59.8%, to $52.5 million, but the company still lost $30.4 million, and burned through $17.7 million of free cash flow. Updated full-year guidance was also mixed, with non-GAAP earnings per share increasing slightly to $1.28-$1.40, but adjusted EBITDA reduced $2 million to $72 million-$76 million. 

Now what: This is a seasonally weak quarter, so I wouldn't read too much into the loss in the quarter. I think the early reaction was probably overdone, and I don't see any major surprises. The key for EnerNOC will be continued growth and turning that expanded presence into profits in summer months. That's when we'll find out if the business plan is working as investors hope.

Three stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report, "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


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

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.

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: 2951856, ~/Articles/ArticleHandler.aspx, 9/15/2014 8:59:54 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...


Advertisement