Echelon Earnings: Here’s Why Shares are Down Now
Echelon Corporation (NASDAQ:ELON) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.61%.
Echelon Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.02 in the quarter versus EPS of $-0.04 in the year-earlier quarter.
Revenue: Decreased 39.25% to $24.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Echelon Corporation reported adjusted EPS income of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.13. It beat the average revenue estimate of $24.43 million.
Quoting Management: “We continued to execute on our strategic objectives this quarter,” said Ron Sege, Chairman and CEO of Echelon. “We have improved the leverage in our financial model, expanded our grid modernization pilots, and begun to invest in the new opportunities that the Internet of Things can create for Echelon.
“Despite this progress, continued delays in new project awards in our targeted smart grid markets will further impact our near-term revenue,” continued Sege. “As always our focus remains on finding new ways to achieve growth and profitability. With the transition to the Internet of Things, we see an opportunity to capitalize on our established brand and installed base through more universal applicability of our technology, providing Echelon with a strong platform to grow over the next several years.”
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