Powell Industries (NASDAQ:POWL) Announces Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Powell Industries (NASDAQ:POWL) issued its quarterly earnings data on Monday. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.49 by ($0.07), Zacks reports. The firm had revenue of $311.74 million for the quarter, compared to analyst estimates of $316.70 million. Powell Industries had a return on equity of 28.36% and a net margin of 16.49%.The business’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.96 earnings per share.

Powell Industries Stock Down 1.2%

Shares of NASDAQ:POWL opened at $208.95 on Wednesday. Powell Industries has a 52-week low of $69.00 and a 52-week high of $328.00. The stock’s fifty day simple moving average is $261.19 and its 200-day simple moving average is $225.24. The company has a market capitalization of $7.61 billion, a P/E ratio of 40.89, a P/E/G ratio of 2.87 and a beta of 1.18.

Powell Industries Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Wednesday, August 19th. Powell Industries’s payout ratio is 7.05%.

Analyst Ratings Changes

POWL has been the topic of several research reports. Weiss Ratings lowered Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. Zacks Research lowered shares of Powell Industries from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 11th. JPMorgan Chase & Co. raised their target price on shares of Powell Industries from $310.00 to $360.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Cantor Fitzgerald lifted their target price on shares of Powell Industries from $160.00 to $320.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Finally, Glj Research raised shares of Powell Industries from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $236.67.

Powell Industries News Summary

Here are the key news stories impacting Powell Industries this week:

• Positive Sentiment: Powell reported record new orders of approximately $934 million, up 158% year over year, while backlog reached a record $2.4 billion, up 69% from a year earlier and 35% sequentially. The backlog includes a data-center order worth more than $400 million, plus significant petrochemical and LNG projects. Powell Industries Q3 Revenue Rises 9% to $312 Million
• Positive Sentiment: Fiscal Q3 revenue increased 8.9% year over year to $311.7 million, while net income rose to $52.2 million, or $1.42 per diluted share. Management’s earnings-call commentary emphasized continued momentum across data-center, energy and industrial markets. Powell Industries Earnings Call Highlights Record Momentum
• Positive Sentiment: The company declared a quarterly dividend of $0.09 per share, payable September 16 to shareholders of record August 19. The payout signals continued shareholder returns, although its yield is modest. Powell Industries Declares Quarterly Cash Dividend
• Neutral Sentiment: Some analysts view the pullback as improving Powell’s risk-reward profile, with the stock trading below its 50-day and 200-day moving averages. However, its valuation remains elevated at roughly 41 times earnings. Powell Industries: The Price Drop Makes It More Attractive
• Negative Sentiment: Fiscal Q3 adjusted EPS of $1.42 missed the $1.49 consensus estimate, and revenue of $311.7 million fell short of the $316.7 million forecast. The earnings disappointment triggered the initial selling despite year-over-year growth. Powell Industries Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Reported gross margin was broadly flat at 30.6%, offering little margin expansion to offset the earnings miss. Separately, available transaction data shows substantial insider selling and no reported insider purchases over the past six months, a potential sentiment overhang.

Insider Buying and Selling at Powell Industries

In related news, EVP Michael William Metcalf sold 4,500 shares of the business’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $284.64, for a total value of $1,280,880.00. Following the completion of the transaction, the executive vice president owned 78,900 shares of the company’s stock, valued at approximately $22,458,096. The trade was a 5.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard E. Williams sold 5,250 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $299.19, for a total transaction of $1,570,747.50. Following the completion of the transaction, the director owned 39,630 shares in the company, valued at approximately $11,856,899.70. This trade represents a 11.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 55,088 shares of company stock valued at $16,070,066. 2.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Powell Industries

A number of hedge funds and other institutional investors have recently modified their holdings of POWL. State Street Corp lifted its stake in shares of Powell Industries by 0.9% during the second quarter. State Street Corp now owns 352,103 shares of the industrial products company’s stock valued at $74,100,000 after buying an additional 3,159 shares during the period. Invesco Ltd. grew its stake in Powell Industries by 2.4% in the 3rd quarter. Invesco Ltd. now owns 348,091 shares of the industrial products company’s stock worth $106,102,000 after acquiring an additional 8,083 shares during the period. Federated Hermes Inc. grew its stake in Powell Industries by 3.4% in the 4th quarter. Federated Hermes Inc. now owns 185,113 shares of the industrial products company’s stock worth $59,010,000 after acquiring an additional 6,094 shares during the period. UBS Group AG raised its holdings in Powell Industries by 6.3% in the 3rd quarter. UBS Group AG now owns 158,247 shares of the industrial products company’s stock valued at $48,235,000 after acquiring an additional 9,374 shares during the last quarter. Finally, Janus Henderson Group PLC raised its holdings in Powell Industries by 24.1% in the 4th quarter. Janus Henderson Group PLC now owns 145,034 shares of the industrial products company’s stock valued at $46,224,000 after acquiring an additional 28,196 shares during the last quarter. 89.77% of the stock is currently owned by hedge funds and other institutional investors.

About Powell Industries

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.