PowerSecure International (POWR) is having a great morning gapping up off a bottom and up nearly 20% after the company reported results that were way ahead of analyst estimates with the company swinging back to a quarterly profit after posting breakeven results last quarter and a loss in the year ago quarter. 

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The company reported a non GAAP EPS of .05/share on revenues of $38 million (45% over the year ago quarter) vs the analyst estimates for a .06/share loss on revenues of $30 million.  The company attributed the strong results to an expansion of its base utility partners, a growing customer roster and the sale of new products and services.  Adding to the positive earnings reports was news that the company landed $14 million in new orders in late October which is in addition to the $15 million in new orders the company announced two weeks prior.  They also announced a share repurchase program of up to $5 million over the next two years.

Sidney Hinton, CEO of PowerSecure, said, "2011 is a very gratifying year for the PowerSecure team, as our growth initiatives have accelerated our top-line growth, and we are realizing the positive bottom-line impact of these revenue increases as the year unfolds. We are building a business platform with increasing diversity in areas where we can utilize our core competencies to serve a growing list of utility partners and customers with products and services that have significant long-term potential. We are building a strong foundation to achieve our mid-range goal of $300 million in revenue and double-digit operating margins by 2015. Importantly, we are achieving our near-term results while at the same time succeeding in our long-term strategic objectives of growing our product lines and growing our Distributed Generation recurring revenue business, which posted another record quarter. Our growth strategies are working, and we are pleased with the progress we are making toward unlocking our revenue and profit potential."

I’m not seeing an estimate for next quarter, but analysts are predicting a profit for Q4 and based on the momentum and current backlog I don’t see any reason why they can’t beat estimates again next quarter.  It’s possible that today’s move is a bottom marking move and should the stock fill today’s gap that would provide a real nice entry point on a position in an emerging company.