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What's Holding EnerNOC's Earnings Back?

Dan Caplinger
May 2, 2013

Next Monday, EnerNOC (NASDAQ: ENOC) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

EnerNOC aims to act as a bridge between power suppliers and users, helping to implement strategies that match up supply generation with power demand. That's been a huge growth industry for businesses trying to cut power costs. Let's take an early look at what's been happening with EnerNOC over the past quarter and what we're likely to see in its quarterly report.

Stats on EnerNOC

Analyst EPS Estimate


Year-Ago EPS


Revenue Estimate

$31.13 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

When will EnerNOC's earnings power up?
Over the past few months, analysts have had conflicting views of EnerNOC's earnings prospects. On one hand, they've widened their loss estimates for the just-ended quarter by more than $0.20 per share. Yet further out, they've boosted their full-year 2013 consensus by a dime per share, apparently expecting the company to make up for the shortfall later in the year. The stock is focusing on the long-term, with a 10% gain since late January.

The idea behind EnerNOC's business is simple yet highly innovative, as it signs up customers that are willing to allow EnerNOC to manage their electricity usage. During peak demand times, EnerNOC reduces its customers' usage, earning money from utilities and power-grid-management companies. Part of those payments go back to customers, while the rest represents EnerNOC's revenue.

The main challenge that EnerNOC faces is that changing weather conditions can have a dramatic impact on the company's results. In February, the company ann