Enernoc (ENOC) Beats Estimates, But Swings Back To Loss

EnerNOC (ENOC) beat low expectations after the bell today, but the company swung back to a big quarterly loss by posting a .50/share loss (analysts expected a .65/share loss).  Revenues were a bit better than expected and higher than the year ago quarter, but a fraction of last quarter’s huge revenue surge at just $26.7 million.  Given the run this stock has had, an earnings beat just isn’t gonna cut it and the stock is giving some back in after hours trading, down about 4%.

Looking ahead to next quarter, the company expects similar results, then sees another big jump in the latter half of 2010.  For the full year 2010, the company sees revenue in the range of $255 – $268 million and a non GAAP EPS of .94 – 1.04/share.  That would represent about a 150% increase in revenues and 300% increase in profits over 2008.  Not too shabby, but remember much of that is built into the stock already.

While that revenue number is about inline with what analysts expect the EPS number is way ahead of expectations.  ENOC will undoubtedly have some bumps in the road, but this is a company clearly on the path to big profits in the years ahead.  It began this year with its first profitable year and will begin ramping up again towards the latter half of next year.  The stock is pricey up here after running up more than 800% in the last year, but any significant pull backs may offer a great opportunity to build long term positions.

Here’s a comment from the CEO:

“We achieved strong top and bottom line results in 2009.  We surpassed our objectives in terms of capacity under management and customer additions, revenues, and earnings per share, and we delivered on our promise to generate positive cash flow from operations in the second half of the year. We also generated a non-GAAP profit of $7 million for the year. As a result of this past performance and our continued momentum, we are well positioned to deliver positive GAAP earnings per share in 2010.”

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