Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Echelon Shares Popped: What You Need to Know

By Matt Koppenheffer - Updated Apr 6, 2017 at 9:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

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 smart-grid player Echelon (Nasdaq: ELON) were powered up today, gaining as much as 20% in intraday trading on heavier-than-average volume.

So what: After the market's close yesterday, Echelon announced its first-quarter results, and investors liked what they saw. Revenue for the quarter leapt 56% from last year to $28.4 million, which was right in line with Wall Street estimates. The company's $0.15 non-GAAP net loss per share improved on last year's $0.18 loss and also beat the $0.21 loss that analysts had expected.

Now what: Beating earnings estimates is one thing, but if a company wants to get its investors really excited, it needs to raise forward guidance -- and Echelon did just that. For the second quarter, management expects non-GAAP earnings per share of $0.00 to $0.02 on revenue of $42 million to $44 million. Both numbers are well ahead of Wall Street estimates. But even though the numbers are certainly encouraging, investors may still want to tread a bit carefully. Since 2005, the company has been pretty consistently unprofitable and cash-flow negative, which puts it on the speculative end of the spectrum.

Want to keep up to date on Echelon? Add it to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Echelon Corporation Stock Quote
Echelon Corporation
ELON

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.