FY2026 EPS Estimate for Powell Industries Reduced by Analyst

Key Points

• Sidoti cut Powell Industries’ FY2026 EPS estimate to $5.40 from $5.67, below the $5.47 consensus forecast, citing weaker near-term expectations.
• Powell’s latest quarter missed analyst expectations, reporting $1.42 EPS versus $1.49 expected and revenue of $311.74 million versus $316.70 million, despite 8.9% year-over-year revenue growth.
• Analyst sentiment remains broadly positive, with the stock carrying an average “Buy” rating and a $236.67 target price; however, elevated valuation near 40 times earnings and execution risks remain concerns.

Powell Industries, Inc. (NASDAQ:POWL - Free Report) - Sidoti cut their FY2026 earnings per share (EPS) estimates for Powell Industries in a report issued on Wednesday, August 5th. Sidoti analyst J. Franzreb now expects that the industrial products company will post earnings per share of $5.40 for the year, down from their prior estimate of $5.67. The consensus estimate for Powell Industries' current full-year earnings is $5.47 per share. Sidoti also issued estimates for Powell Industries' Q4 2026 earnings at $1.59 EPS, Q1 2027 earnings at $1.28 EPS, Q2 2027 earnings at $1.54 EPS, Q4 2027 earnings at $2.11 EPS, FY2027 earnings at $6.95 EPS, Q1 2028 earnings at $1.56 EPS, Q2 2028 earnings at $1.87 EPS and FY2028 earnings at $7.98 EPS.

Powell Industries (NASDAQ:POWL - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The industrial products company reported $1.42 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.07). Powell Industries had a net margin of 16.49% and a return on equity of 27.51%. The firm had revenue of $311.74 million for the quarter, compared to analysts' expectations of $316.70 million. During the same period in the previous year, the firm posted $3.96 EPS. The firm's quarterly revenue was up 8.9% compared to the same quarter last year.

Several other equities analysts also recently weighed in on the company. JPMorgan Chase & Co. lifted their target price on Powell Industries from $310.00 to $360.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Zacks Research downgraded Powell Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Glj Research upgraded Powell Industries from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. Weiss Ratings lowered shares of Powell Industries from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 16th. Finally, Cantor Fitzgerald raised their price objective on shares of Powell Industries from $160.00 to $320.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $236.67.

Powell Industries Stock Performance

NASDAQ:POWL opened at $208.33 on Thursday. The stock has a market capitalization of $7.59 billion, a P/E ratio of 39.99, a PEG ratio of 2.76 and a beta of 1.18. Powell Industries has a fifty-two week low of $69.00 and a fifty-two week high of $328.00. The company has a 50 day moving average price of $259.44 and a 200 day moving average price of $225.75.

Institutional Trading of Powell Industries

A number of institutional investors have recently modified their holdings of POWL. USA Financial Formulas acquired a new position in shares of Powell Industries during the 1st quarter worth $43,000. Greenline Wealth Management LLC purchased a new stake in shares of Powell Industries during the fourth quarter worth about $29,000. Hollencrest Capital Management acquired a new position in Powell Industries in the 1st quarter valued at $54,000. MassMutual Private Wealth & Trust FSB increased its stake in Powell Industries by 183.8% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 68 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC increased its stake in Powell Industries by 126.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 113 shares of the industrial products company's stock valued at $36,000 after purchasing an additional 63 shares during the last quarter. 89.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Powell Industries

In other Powell Industries news, Director Richard E. Williams sold 5,250 shares of Powell Industries stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $299.19, for a total value of $1,570,747.50. Following the sale, the director owned 39,630 shares of the company's stock, valued at approximately $11,856,899.70. The trade was a 11.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Thomas W. Powell sold 33,958 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $294.49, for a total value of $10,000,291.42. Following the transaction, the insider owned 564,736 shares in the company, valued at $166,309,104.64. The trade was a 5.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 55,088 shares of company stock valued at $16,070,066. Insiders own 2.20% of the company's stock.

Powell Industries Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.36 annualized dividend and a dividend yield of 0.2%. Powell Industries's payout ratio is presently 7.05%.

Powell Industries News Roundup

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

• Positive Sentiment: Powell’s record orders lifted its backlog to approximately $2.4 billion, supported by demand from data centers, utilities and energy markets. Management is increasing capacity to address this demand, providing visibility for future revenue growth. POWL Q3 Earnings Call Highlights Record Orders and Capacity Push
• Positive Sentiment: Sidoti raised several longer-term earnings forecasts, including FY2027 EPS to $6.95 from $6.93 and FY2028 EPS to $7.98 from $7.95. Estimates for Q1 2027, Q2 2027, Q1 2028 and Q2 2028 were also increased, suggesting analysts remain constructive on Powell’s growth outlook.
• Neutral Sentiment: Cantor Fitzgerald maintained a Hold rating, indicating that the company’s strong backlog and end-market demand may be offset by execution risks and an elevated valuation. Cantor Fitzgerald Sticks to Its Hold Rating for Powell Industries
• Negative Sentiment: Sidoti reduced its FY2026 EPS forecast to $5.40 from $5.67 and cut Q4 2026 EPS to $1.59 from $1.78. The firm also lowered its Q4 2027 estimate to $2.11 from $2.20, signaling weaker near-term expectations despite later upgrades.
• Negative Sentiment: Powell’s latest quarterly results missed analyst expectations for both earnings and revenue. The shortfall, combined with a valuation near 40 times earnings, has increased investor sensitivity to execution and may be driving the stock’s decline. Powell Industries Q3 Earnings and Revenues Miss Estimates

Powell Industries Company Profile

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.

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