Energy Focus, Inc. (EFOI) Stock | Spectacular Q3 Financial Results

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Energy Focus, Inc.  (NASDAQ: EFOI)

 

Energy Focus, Inc. (EFOI), an energy efficient lighting systems and solutions company yesterday announced positive third quarter 2015 financial results. Reported record Net sales of $18.3 million a 151% increase over the previous year.

 

Energy Focus, Inc. CEO Comments

“Our continuing rapid year-over-year growth in sales and profits during the third quarter reflect the steadfast focus and tireless dedication of our teams in bringing high quality and customer centric TLED products to targeted industry verticals,” said James Tu, Executive Chairman and Chief Executive Officer of Energy Focus, Inc. “In addition to robust sales of products for the U.S. Navy, which has now reached a fleet penetration rate of approximately 30%, during the quarter, we started to register significant year-over-year, as well as quarter-over-quarter, growth in commercial sales, after more than 18 months of persistent and steady account and pipeline building, which is accelerating as we augment our business development and sales force. Our gross margins also grew during the quarter due to increased operational efficiency, as well as strengthened buying power resulting from higher unit volumes.”   Globe Newswire

 

EFOI Technical Analysis

EFOI

EFOI gapped up in price yesterday to $17.45, up from the prior day’s close of $14.60, which is a 20% increase on the favorable news. Taking a look at the daily chart, we can see the last time EFOI traded above this price level was on September 10th, when it closed at $23. On September 8th, EFOI was trading at its 52 week high price of $29.20. Only 4 trading days later, EFOI fell all the way to $13.83, equivalent to a 53% drop in price. Since then, EFOI has been trying to find its equilibrium and has been trading in between $11 – $16. So, with the huge gap down in early September, there is still some room for this move up to continue. EFOI has a low float of 7.22 million shares and is trading over 4 times the normal daily trading volume. EFOI did reach pre market highs of $17.70, but it gave back $0.25 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $17.60 looking for a run up to $19. My stop loss would have been $17.35, fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

Energy Focus, Inc. designs, develops, manufactures, markets, and installs energy-efficient lighting systems and solutions in the United States and internationally. It operates in two segments, Products and Solutions. The company offers commercial, industrial, government, and military and maritime energy-efficient light-emitting diode (LED) lighting offerings, including LED luminares and fixtures to serve the United States Navy; tubular LED replacements for linear fluorescent lamps; LED luminares and fixtures; LED docklights; tubular LED parking garage luminares and fixtures; LED cold storage globe luminares; and LED retrofit kits for high-intensity discharge applications. It also engages in the design and development of lighting retrofit solutions, including lighting and energy audits; lighting design and solution development; turnkey lighting implementation; LEED ready lighting upgradation services; and pre and post upgrade monitoring and measurement primarily to the public-sector building market, as well as research and development services. The company serves direct corporate accounts, general contractors, and lighting retrofit companies primarily in the healthcare, industrial, education, and retail markets; and municipalities, universities, schools, and hospitals, as well as industrial and manufacturing facilities. Energy Focus, Inc. markets its products through direct sales employees, independent sales representatives, and various distributors. The company was formerly known as Fiberstars, Inc. and changed its name to Energy Focus, Inc. in May 2007. Energy Focus, Inc. was founded in 1985 and is headquartered in Solon, Ohio.  Yahoo Finance

 

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