Why Shares of Energy Recovery, Inc. Popped Today
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 Energy Recovery jumped a whopping 36% today after reporting earnings.
So what: Fourth-quarter revenue was up 54% to $23.2 million and net income swung from a loss to a $6.7 million, or $0.13 per share, profit. That's $0.05 better than estimates and revenue was better than expected as well.
Now what: The demand for desalination products in the Middle East and western U.S. helped drive revenue and earnings growth. Given likely growth in this business, I think there's a lot of potential for Energy Recovery. Shares aren't cheap right now and analysts only expect a $0.02-per-share profit last year but the decade-long story is worth paying for right now.
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The article Why Shares of Energy Recovery, Inc. Popped Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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