PowerSecure International (NYSE:POWR) continues to have a rough go of it, dropping another 10% today after the company missed analyst estimates on the EPS side. Considering analysts were expecting a profit of 0.04, it’s no wonder the stock continues to drop further below key support of the $6 level. The company posted decent revenue, but a dip in margins eroded the EPS.
According to CEO Sidney Hinton, POWR recorded the largest revenue in company history for its Utility Infrastructure and LED Lighting divisions, and its broadening of product offerings is working. Hinton said he was leased with the growth of the recurring revenue business but that POWR has had to sacrifice some near term revenue and profit recognition.
Technically, POWR is a broken stock with previous support around $6 now acting as resistance. The stock should be avoided for some time.