Powell Industries Beats on the Top Line
Powell Industries (NAS: POWL) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Powell Industries beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins improved, and net margins expanded.
Powell Industries booked revenue of $181.5 million. The five analysts polled by S&P Capital IQ expected revenue of $155.6 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $125.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.63. The five earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS of $0.63 for Q2 were 320% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.9%, 100 basis points worse than the prior-year quarter. Operating margin was 6.6%, 490 basis points better than the prior-year quarter. Net margin was 4.1%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $163.6 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $656.0 million. The average EPS estimate is $1.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 118 rating the stock outperform, and 11 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Powell Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Powell Industries is outperform, with an average price target of $41.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.