Orion Energy down 41% in pre-market on analyst downgrade, lowered guidance
Orion Energy Systems Inc. (Nasdaq:OESX) is down more than 41% in pre-market trading today after the company was downgraded earlier in the day to “market weight” from “overweight” at Thomas Weisel. The research firm lowered its price target to $5 from $6. The downgrade comes on the heels of the Plymouth, Wis.-based energy management company’s announcement after Tuesday’s close that it would report lower-than-expected first quarter earnings. First-quarter revenue should be in the range of $16.1 million to $16.3 million, the company said. Wall Street was expecting revenues of $21.9 million for the quarter ended June 30. Orion revised its 2009 annual revenue guidance to between 25% to 28% year-over-year growth. Total revenue is now forecast for a range of $101 million to $103 million. Orion attributed the lowered guidance to its emphasis on building a sales organization, which resulted in less time on closing new sales.
Ahead of the opening, shares are at $5.01, down $3.59 or 41.7% from Tuesday’s closes.
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