NEW YORK (TheStreet) -- Shares of PowerSecure International Inc. (POWR) are higher by 15.21% to $9.09 on Wednesday morning after the company announced it has improved its terms of service agreement with one of its major utility customers, although the company did not give the customer's name.
PowerSecure provides products and services to electric utilities and their commercial, institutional and industrial customers.
The company said the improved terms of service agreement will include adjustments to pricing, work assignments, and restore the profitability of the work it provides its utility customer.
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In addition, PowerSecure also announced it plans to "vigorously defend" itself against claims it was hiding information from shareholders regarding a shift in profit assignments which negatively affected operations and utility service performance, and that the company was experiencing productivity losses.
These and other claims were disclosed in a class action lawsuit filed in the U.S. Court in the eastern district of California last month.
Separately, TheStreet Ratings team rates POWERSECURE INTL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate POWERSECURE INTL INC (POWR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."