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PowerSecure collapses on Q1 miss, bleak guidance, cash burn

  • On top of badly missing Q1 estimates, PowerSecure (POWR -61.7%) is guiding for Q2 revenue of $55M-$60M and EPS of -$0.09 to -$0.15, far below a consensus of $77.6M and $0.15. Revenue is expected to grow to $62M-$67M in Q3 (below an $89.3M consensus), and $67M-$72M in Q4.
  • PowerSecure ended Q1 with $38.2M in cash, down sharply from $50.9M at the end of Q4. Term debt and capital leases total $26.1M.
  • Backlog is currently at $225M, down from $248M at the time of the March 10 Q4 report. Gross margin fell to 20.9% in Q1 from 30.6% a year ago.
  • The company says it "mis-timed actions to shift resources to more profitable customers," and is seeing "protracted timing in converting larger distributed generation project opportunities from [its] pipeline."
  • Silver Spring Networks, another technology provider to utilities, crashed yesterday after providing weak guidance blamed on delayed deal closings.
  • Q1 results, PR
Comments (2)
  • Scoobster
    , contributor
    Comments (8) | Send Message
    Regarding Powersecure (POWR), how do you go from EPS of + $0.44 in 2013 to a projected range of -$0.42 to - $0.24 (yes NEGATIVE!!!) for 2014 between the first quarter call 3 months ago and now??? And these guys still don't know exactly how it happened and exactly what to do about it. They realize that they timed the resources wrong by moving resources to more profitable projects, but these more profitable projects have a much longer sell cycle. Oh and they are slowing down growth so that they can become best in class from a financial point of view. They want to get the financial side right, which is good I guess but how much decrease in growth are we talking about? I don't presently own the stock and I am not sure if I will buy it even though it dropped from about $20 to $7 in 24 hours.
    8 May, 03:56 PM Reply Like
  • Jim B in Cary
    , contributor
    Comments (3) | Send Message
    I bought at $8 years ago and have watched them climb. They are a good ethical company actually doing good work in the field. Too bad Wall Street only looks at quarterly numbers and reacts so strongly. As someone who deals with them daily "in the real world", they are the same great company today as they were yesterday. Maybe a good time to buy more?
    8 May, 05:41 PM Reply Like
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