Why Energy Recovery (ERII) Is Soaring After the Bell

NEW YORK (TheStreet) -- Energy Recovery (ERII) was spiking in extended trading Wednesday after reporting above-consensus results for its fourth quarter.

After the bell, shares popped 18.7% to $4.75.

The energy pump developer recorded net income of 13 cents a share, a nickel higher than analysts polled by Thomson Reuters anticipated.

Revenue of $23.24 million was 54.1% higher year over year and beat consensus by $1.87 million.

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TheStreet Ratings team rates ENERGY RECOVERY INC as a Sell with a ratings score of D+. The team has this to say about their recommendation:

"We rate ENERGY RECOVERY INC (ERII) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time."

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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