Why Silver Spring Networks Shares Sprung Higher
Aug 2nd 2013 1:05PM
Updated Aug 2nd 2013 1:08PM
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 Silver Spring Networks have sprung higher today, up by as much as 23% after the company reported second-quarter earnings.
So what: Non-GAAP revenue totaled $86.5 million, which translated into an adjusted net loss of $0.10 per share. Both top and bottom line results were better than the $79.6 million in sales and $0.17 per share loss that investors were expecting.
Now what: CEO Scott Lang said the company continues to execute on its roadmap, and numerous utilities are expanding their relationships with Silver Spring. On a GAAP basis, the company posted $9.5 million in net income, a substantial improvement from the $23.4 million net loss a year ago. Stifel Nicolaus has reiterated its buy rating while boosting its price target from $22 to $32.
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