NEW YORK (TheStreet) -- PowerSecure (POWR) stock is gaining Tuesday after the company announced it had authorized a stock repurchase program worth $5 million. By early afternoon, shares had climbed 6.1% to $6.99.
"In light of the prevailing price of the company's common stock, the company intends to immediately commence making repurchases of shares of its common stock under its Stock Repurchase Program," PowerSecure said in a statement.
Since its first-quarter earnings report last Wednesday, shares have plummeted 66.2%. Over the three months to March, the company reported a net loss of 17 cents a share and revenue of $52.8 million. Analysts surveyed by Thomson Reuters expected profits of 2 cents a share and revenue of $59.33 million.
TheStreet Ratings team rates POWERSECURE INTL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate POWERSECURE INTL INC (POWR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- POWR's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 57.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- POWR's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, POWR has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $6.91 million or 35.51% when compared to the same quarter last year. In addition, POWERSECURE INTL INC has also vastly surpassed the industry average cash flow growth rate of -16.48%.
- POWERSECURE INTL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, POWERSECURE INTL INC increased its bottom line by earning $0.23 versus $0.17 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.23).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, POWERSECURE INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: POWR Ratings Report