NEW YORK (TheStreet) -- Shares of Energy Recovery (ERII - Get Report) were gaining 18.7% to $8.81 with heavy trading volume on Friday after the pressure energy technology company beat analysts' estimates for earnings in the third quarter.

After the market closed on Thursday, Energy Recovery reported a loss of 1 cent a share for the third quarter, beating analysts' estimates of a loss of 5 cents a share for the quarter. Revenue grew 126.6% year over year to $12.1 million for the quarter, above analysts' estimates of $9.01 million.

The company said the increase in revenue was primarily due to a "mega-project shipment" that totaled $3.8 million as well as higher OEM and AM shipments of $1.7 million and $1.5 million, respectively.

"We achieved record quarterly revenue and meaningful margin expansion which reflects strengthening demand in the global desalination market and demonstrates the success of the sharp execution of our reloaded strategy," President and CEO Joel Gay said in a statement. "During the quarter we continued to bolster our portfolio of large-scale projects supported by our PX Pressure Exchanger technology including mega-project awards totaling $3.8 million which contributed to our year-over-year revenue growth and improved margins."

About 4.5 million shares of Energy Recovery were traded by 1:47 p.m. Friday, above the company's average trading volume of about 826,000 shares a day.

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

We rate ENERGY RECOVERY INC (ERII) a SELL. This is driven by a number of negative factors, 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. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: ERII

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