Core Viewpoint - Powell Industries, Inc. is set to release its first-quarter fiscal 2025 results, with earnings estimates showing a decline in expectations despite projected revenue growth [1][2]. Earnings Estimates - The Zacks Consensus Estimate for fiscal first-quarter earnings is $2.83 per share, reflecting a 6.6% decline over the past 60 days but indicating a 42.9% growth from the previous year [2]. - Revenue estimates stand at $244.2 million, representing a 25.9% increase year-over-year [2]. Earnings Surprise History - Powell has a strong earnings surprise history, exceeding the Zacks Consensus Estimate in the last four quarters with an average surprise of 57.6% [3]. Market Conditions and Growth Drivers - The company's performance is bolstered by favorable conditions in the oil, gas, and petrochemical markets, alongside a growing presence in data centers and electric utilities [4][7]. - Increased demand for electrical power from data centers in the U.S. is driving product demand [8]. Backlog and Orders - Powell's backlog reached $1.3 billion at the end of the fourth quarter of fiscal 2024, supported by a healthy volume of small and medium-sized orders [9]. Facility Expansion - The expansion of the Houston product factory is expected to enhance the company's ability to meet current demand and support volume growth [10]. Cost Challenges - The company faces rising costs of sales and operating expenses, with material costs accounting for 47% of revenues in fiscal 2024 [11]. - Supply-chain constraints for engineered components are anticipated to inflate costs and delay product deliveries [11][12]. Stock Performance - Powell's shares have increased by 193.9% over the past year, outperforming both the industry and the S&P 500 [13]. - The forward 12-month price-to-earnings ratio is 17.03X, below the industry average of 24.60X, indicating potential attractiveness for investors [15]. Investment Thesis - Powell is well-positioned to capitalize on opportunities in oil, gas, and petrochemical markets, with a diversified product portfolio and strong backlog [18]. - However, near-term challenges such as escalating costs and supply-chain issues may impact margin performance [19].

Group 1 - Powell Industries (POWL) closed at $236.37, reflecting a -1.72% change from the previous day, underperforming the S&P 500's 0.53% gain [1] - Over the past month, POWL shares have appreciated by 8.5%, outperforming the Industrial Products sector's gain of 2.99% and the S&P 500's gain of 1.24% [1] - The upcoming earnings report is set for February 6, 2025, with projected EPS of $2.83, indicating a 42.93% increase year-over-year, and revenue expected at $244.17 million, up 25.85% from the prior-year quarter [2] Group 2 - Full-year Zacks Consensus Estimates predict earnings of $13.70 per share and revenue of $1.11 billion, representing year-over-year changes of +11.47% and +9.33% respectively [3] - Recent shifts in analyst projections for Powell Industries are important, as positive estimate revisions are seen as a good sign for the company's business outlook [3][4] - The Zacks Rank system, which includes estimate changes, currently ranks Powell Industries at 4 (Sell), with a stagnant consensus EPS projection over the past 30 days [5] Group 3 - Powell Industries has a Forward P/E ratio of 17.56, which is below the industry average of 22.48, indicating it is trading at a discount [6] - The company has a PEG ratio of 1.25, compared to the industry average PEG ratio of 1.81, suggesting favorable valuation metrics [7] - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 182, placing it in the bottom 28% of over 250 industries [7]

Company Performance - Powell Industries (POWL) closed at $290.80, with a slight increase of +0.12% compared to the previous day, outperforming the S&P 500, which fell by 0.29% [1] - Over the past month, shares of Powell Industries have increased by 25.58%, significantly outperforming the Industrial Products sector's gain of 5.98% and the S&P 500's gain of 2.52% [1] Upcoming Earnings - The earnings report for Powell Industries is anticipated on February 6, 2025, with expected earnings of $2.83 per share, indicating a year-over-year growth of 42.93% [2] - Revenue is projected to be $244.17 million, reflecting a 25.85% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $13.70 per share and revenue at $1.11 billion, representing increases of +11.47% and +9.33% respectively from the prior year [3] - Recent analyst estimate revisions suggest a positive outlook for Powell Industries, indicating optimism about the company's business trends [3] Valuation Metrics - Powell Industries is currently trading at a Forward P/E ratio of 21.21, which is lower than the industry average of 22.73 [6] - The company has a PEG ratio of 1.51, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.94, suggesting a favorable valuation relative to expected earnings growth [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [7] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [7]

HOUSTON, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced that it will release results for the fiscal first quarter ended December 31, 2024 on Thursday, February 6, 2025 after the market closes. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live within the Investor Relations section of the C ...

Powell Industries, Inc.  (POWL) shares have surged 89.9% in the past six months, outpacing the Industrial Products sector and the S&P 500, which have returned 5.5% and 8.2%, respectively. The company has also outshined the industry's decline of 1.7%, and its peers ESCO Technologies Inc. (ESE) and Schneider Electric S.E.'s (SBGSY) gains of 11.3% and 7.2%, respectively, over the same time frame.POWL Outperforms Industry, Sector & S&P 500 Image Source: Zacks Investment Research Closing at $261.34 in the last t ...

In the latest market close, Powell Industries (POWL) reached $261.34, with a +1.6% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.Heading into today, shares of the energy equipment company had gained 5.66% over the past month, outpacing the Industrial Products sector's loss of 2.45% and the S&P 500's loss of 2.14% in that time.Analysts and investors alike will be keeping a cl ...

Industry Focus - The analyst specializes in studying businesses within the technology, industrial, and conglomerate sectors, with a preference for companies that exhibit strong foundational strength and long-term growth potential [1] Analytical Approach - The analyst employs a combination of financial analysis and narrative storytelling to provide insights into company performance and market dynamics, aiming to enhance understanding of the financial world [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with any mentioned companies [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide investment recommendations or advice [3] - Seeking Alpha analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body [3]

Stock Performance - Powell Industries (POWL) closed at $231 16, reflecting a +0 78% increase from the previous trading day [1] - The stock outperformed the S&P 500, which lost 1 54%, the Dow, which dropped 1 63%, and the Nasdaq, which decreased by 1 63% [1] - Over the past month, Powell Industries shares lost 10 31%, while the Industrial Products sector lost 8 55% and the S&P 500 lost 2 2% [2] Earnings and Revenue Forecast - The company is forecasted to report an EPS of $2 83, a 42 93% increase from the same quarter last year [3] - Quarterly revenue is expected to be $244 17 million, up 25 85% year-over-year [3] - For the entire fiscal year, earnings are projected at $13 70 per share, a +11 47% change, and revenue at $1 11 billion, a +9 33% change from the prior year [4] Analyst Projections and Valuation - Positive estimate revisions by analysts are seen as a good sign for the company's business outlook [5] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), currently rates Powell Industries as 1 (Strong Buy) [7] - Powell Industries has a Forward P/E ratio of 16 75, below the industry average of 21 17 [8] - The company's PEG ratio is 1 2, compared to the industry average of 1 84 [8] Industry Overview - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 36, placing it in the top 15% of all industries [9] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Stock Comparison - Powell Industries (POWL) and Kone Oyj Unsponsored ADR (KNYJY) are two stocks in the Manufacturing - Electronics sector that are being compared for value investment attractiveness [1] Valuation Metrics - POWL has a forward P/E ratio of 16.75, while KNYJY has a forward P/E of 22.99 [5] - POWL has a PEG ratio of 1.20, compared to KNYJY's PEG ratio of 3.25 [5] - POWL has a P/B ratio of 5.69, while KNYJY has a P/B ratio of 8.93 [6] Investment Grades - POWL holds a Value grade of B, while KNYJY has a Value grade of C [6] - POWL has a Zacks Rank of 1 (Strong Buy), while KNYJY has a Zacks Rank of 4 (Sell) [3] Earnings Outlook - POWL is likely seeing its earnings outlook improve to a greater extent due to positive earnings estimate revisions [3]

Company Performance - POWL's shares have surged 163.3% in the past year, significantly outperforming the industry's 14.5% growth, the broader Zacks Industrial Products sector's 9.6% growth, and the S&P 500's 27.4% growth [7] - The company has also outperformed peers like Eaton Corporation plc (ETN) and Franklin Electric Co, Inc (FELE), which gained 41.7% and 1.5%, respectively, over the same period [7] - Despite a recent 19.8% decline in share price over the past month, POWL's strong top-line growth and impressive EPS growth have maintained its competitive advantage [16][17] Financial Metrics - The Zacks Consensus Estimate for POWL's fiscal 2025 revenues is $1.1 billion, indicating 9.3% year-over-year growth, with Q1 fiscal 2025 revenues estimated at $244.2 million, reflecting 25.9% year-over-year growth [4] - Earnings estimates for fiscal 2024 have increased 10.1% to $13.70 per share, while fiscal 2025 estimates have improved 11.9% to $14.81, indicating year-over-year growth of 11.5% and 8.1%, respectively [14] - POWL's trailing 12-month ROE is 35.68%, significantly higher than the industry's 10.24%, and its return on assets is 17.35%, compared to the industry's 5.74% [11][23] Market Diversification and Growth Drivers - POWL has diversified beyond its core oil, gas, and petrochemical markets, enhancing its market share in utility, data center, commercial, and other industrial markets [3] - The company's oil and gas markets grew 23% year-over-year, while petrochemical markets surged 112% in the fiscal fourth quarter [9] - Increasing demand for electrical power from data centers and growth in energy transition projects, such as biofuels, carbon capture, and hydrogen, are key growth drivers [3][9] Expansion and Backlog - POWL is undertaking a $11 million facility expansion project at its Houston product factory, expected to be completed by mid-fiscal 2025, to support growth in data centers, hydrogen, carbon capture, and transitional energy markets [10] - The company exited the fiscal fourth quarter with a strong backlog of $1.3 billion, with new orders totaling $267 million, up from $171 million in the year-ago quarter [18] Valuation - POWL's forward 12-month price-to-earnings ratio is 16.67X, well below the industry average of 25.05X, presenting an attractive valuation for investors [20] - The stock is trading higher than its peer, EnerSys (ENS), but remains favorably valued compared to the broader industry [20]