Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Pike Electric were shining brighter today, gaining as much as 10% after posting a strong quarterly earnings report.
So what: The utility-support provider said revenue jumped 59% to $273 million and earnings per share grew all the way from $0.14 a share to $0.67 in the quarter. Storm restoration revenue was significantly higher as Superstorm Sandy knocked out power across a wide swath of the Eastern Seaboard, so this quarter's results don't represent a trend. Still, the company grew in all core areas, and construction revenue increased by 46%.
Now what: Shares cooled off after coming out of the gate flying and finished up 3.4%. Energy solutions providers such as Pike seem to have a promising future ahead of them, with the increased likelihood of catastrophic storms caused by climate change, and the widespread switch in the utility industry from coal-burning plants to ones that use natural gas. One of Pike's biggest clients, for example, is Duke Energy, which just announced a plan to retire two coal-fired plants two years earlier than planned.
Want to stay connected to this company? Add Pike Electric to My Watchlist.
The article Why Pike Electric Shares Jumped originally appeared on Fool.com.
Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.