Power One (PWER) Beats With Big Growth Again, Shares Up Over 15%

Power-One (PWER) continues its tear over the past year with the stock vaulting 10-fold in that time.  It’s not done yet.  The stock is up over 15% in after hours trading after the company beat estimates by a wide margin, posting huge quarter over quarter growth once again.  They reported a Q2 EPS of .17/share, .07 better than analyst estimates on revenues of $215 million which also beat analyst estimates ($186 million).  That’s a 325% surge in profits sequentially and an even bigger jump over the year ago quarter when the company posted a loss of .08/share.  Revenues jumped 41% sequentially and 136% over the year ago quarter.  Clearly business continues to boom at Power One.

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Its Renewable Energy Solutions unit is leading the charge, posting a whopping 745% increase over the year ago quarter to $145 million.  Back then this unit only made up 18% of the Power One’s business.. it now makes up 66%.

CEO Richard Thompson commented: “In the second quarter, we drove significantly improved revenue growth from renewable energy products, due to capacity expansion and specific demand for Power-One’s industry-leading products. In turn, this led to expanded gross and operating margins and the third straight quarter of net profit.  Orders were strong in the quarter, backlog increased and we expect to grow revenue again in the third quarter. Strategically, we are positioning the company to achieve profitable growth across all of our business segments through new product introductions, expansion and manufacturing efficiencies.”

The company announced it will begin issuing quarterly revenue guidance and for next quarter forecasts revenue in the range of $250 – $270 million. 

While this is a mighty impressive quarter and next quarter is expected to be the same, Power One is at mighty lofty levels up here.  I don’t think I’ll be chasing it on a gap up tomorrow.

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