PowerSecure (POWR) reported terrific growth after the bell today, but compared to what Wall St was estimating, the results were mixed.  The company beat on the EPS side posting a non GAAP EPS of .07/share vs the estimate of .06/share, while revenues didn’t quite meet expectations at $24.7 million.  It’s still a great quarter with revenues increasing 25% and EPS increasing 200% over the year ago quarter.  However, that was priced into the stock when it vaulted nearly 50% in the past month.  I don’t think this report keeps the stock moving higher and it may need to test the support level around 9/share.  That “may” be a great 2nd chance opportunity on an emerging growth stock.

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Most of the revenue (about $20 million) comes from its smart grid products, but the LED biz is growing quickly with over 100% growth during the quarter.  Gross margins were very impressive at 39%.  CEO Sidney Hinton commented on the improving conditions: “We continue to see signs that economic recovery is underway and business investment is increasing — as the premium businesses placed on cash reserves in 2009 is now being balanced by the need to make productive capital investments to drive future growth and profitability.  As the economy begins to recover, we are very excited about the strategic positions of each of our businesses, and their growth opportunities and promise. We have a terrific foundation set for 2010, and we are focused on executing with excellence to deliver strong value to our utility partners and business customers.”

Along with the earnings report, the company has announced $15 million in new business, mostly for its Interactive Distributed Generation biz and has filed a mixed shelf for the purchase of the rest of the EfficientLights LED lighting business. 

Shares are being pressured in after hours trading and like I said above, I think the odds of a move to the 9 level are quite good.