Shares of Power One Inc. (NASDAQ: PWER) are seeing a huge rally in today’s trading. The stock reached a 52-week high of $12.64 today. At last check, it was up 22.19% to $12.17, with volume up from daily average of 2.97 million to 11.90 million.
The huge rally comes after Power-One reported its second-quarter financial results, on Thursday. The company reported record second-quarter net sales of $215 million, up 135% from the second quarter of 2009. The company reported second-quarter net income of $24 million, or $0.17 per diluted share. For the same period last year, the company had reported a net loss of $7 million, or $0.08 per share. Consolidated bookings, for the second quarter of 2010, reached $757 million.
Power-One managed a gross margin expansion for the fifth consecutive quarter. The company’s gross margin stood at 37%, for the second quarter of 2010, compared with 19.9% reported for the same period last year.
For the second quarter of 2010, Power-One’s Renewable Energy Solutions business unit posted a record $142 million in revenue, representing a year-over-year increase of 745%. The company’s Power Solutions business unit, meanwhile, reported second-quarter revenue of $72 million, compared with $74 million reported for the same period last year.
Richard Thompson, CEO of Power-One, said that the company drove significantly improved revenue growth from renewable energy products due to capacity expansion and specific demand for the company’s industry-leading products, which led to expanded gross and operating margins and a third consecutive quarterly profit. He also said that the company expects to grow its revenue again in the third quarter of 2010.
For the third quarter of 2010, the company expects revenue to come in between $250 million and $270 million.
Following the announcement of record second-quarter results and strong guidance for the third quarter, the Power-One stock hit a 52-week high today. Year-to-date, the stock has gained 181.38%. It is now trading above its 50-day and 100-day moving averages, which is a strong bullish signal. The stock has support at $9.27. It has broken through the resistance level of $10.19 in today’s trading.
Analysts, currently, have a consensus recommendation of Buy. The stock has 4 Buy and 1 Outperform rating, at the moment.
Power-One is a Camarillo, California-based designer and manufacturer of energy-efficient power conversion and power management solutions.
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