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Powell Industries stock plunges 16% on Q4 revenue misses

EditorRachael Rajan
Published 19/11/2024, 22:28
POWL
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HOUSTON - Powell Industries , Inc. (NASDAQ:POWL) reported fourth quarter earnings that exceeded analyst expectations, but revenue fell short of estimates, sending shares down 16.45% in after-hours trading.

The electrical equipment manufacturer posted adjusted earnings per share of $3.77 for the quarter ended September 30, beating the consensus estimate of $3.55. However, revenue came in at $275 million, missing analyst projections of $286.49 million.

Despite the revenue miss, Powell's Q4 sales still increased 32% YoY from $208.6 million in the prior year period. The company saw strong growth across its key sectors, with Petrochemical revenue surging 112% to $50.4 million and Oil & Gas revenue rising 23% to $115.4 million.

"Powell delivered a strong fourth quarter performance that closed out another incredible year for the Company," said Brett A. Cope, Powell's Chairman and CEO. "We experienced tremendous growth in our largest markets, with our top line growing by 45% in fiscal 2024."

For the full fiscal year 2024, Powell reported revenue of $1.0 billion, up 45% from $699.3 million in 2023. Net income jumped 175% to $149.8 million, or $12.29 per diluted share.

Looking ahead, CFO Michael Metcalf expressed optimism for fiscal 2025, citing "continued strength across most of our end markets" and a robust backlog. However, he noted the company's first quarter is typically seasonally slower.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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