Powell Gears Up to Report Q2 Earnings: Here's What to Expect

Core Viewpoint - Powell Industries, Inc. is expected to report strong second-quarter fiscal 2025 results, driven by solid momentum in petrochemical and oil and gas markets, alongside growth in energy transition projects [2][3]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for Powell's fiscal second-quarter revenues is $277.3 million, reflecting an 8.7% increase from the previous year [3]. - The consensus estimate for adjusted earnings is $3.34 per share, indicating a 21.5% increase from the year-ago quarter [3]. - Powell has a history of earnings surprises, with an average beat of 33.3%, and last quarter's earnings of $2.86 per share exceeded the Zacks Consensus Estimate of $2.83 by 1.1% [1][3]. Group 2: Performance Drivers - Solid performance is anticipated due to the company's investments in energy transition projects, including biofuels, carbon capture, and hydrogen [2]. - The expansion of the Houston facility is expected to enhance fabrication and integration support for large power control rooms, contributing positively to top-line results [2]. Group 3: Challenges - High costs and expenses, particularly an increase in raw material costs, are likely to negatively impact Powell's performance in the upcoming quarter [4]. - The company's international operations expose it to risks from adverse currency fluctuations, which may also affect performance [4]. Group 4: Earnings Prediction Model - Powell has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are at $3.34, indicating uncertainty in predicting an earnings beat this time [5][6]. - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [6].