Powell Industries, Inc. (NASDAQ:POWL) Announces $0.09 Quarterly Dividend

Key Points

• Powell declared a $0.09 quarterly dividend payable June 17 to shareholders of record May 20 (ex-dividend May 20), implying a $0.36 annualized payout with a roughly 0.1% yield and a low payout ratio (~2.4%) that is well covered by earnings.
• The company reported quarterly EPS of $1.25, missing estimates by $0.09, and revenue of $296.6M slightly below expectations, although revenue was up 6.5% year‑over‑year and margins/ROE remain strong.
• Shares jumped intraday to $294.90 on heavy volume, but the stock carries a high valuation (PE ~57.5) and analysts' consensus is a "Buy" with a $184.25 price target, well below the recent trading price.

Powell Industries, Inc. (NASDAQ:POWL - Get Free Report) declared a quarterly dividend on Tuesday, May 5th. Stockholders of record on Wednesday, May 20th will be paid a dividend of 0.09 per share by the industrial products company on Wednesday, June 17th. This represents a c) dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Wednesday, May 20th.

Powell Industries has raised its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 3 consecutive years. Powell Industries has a payout ratio of 2.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Powell Industries to earn $6.23 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 5.8%.

Powell Industries Price Performance

Shares of POWL traded up $24.95 during mid-day trading on Tuesday, reaching $294.90. 1,352,903 shares of the company's stock were exchanged, compared to its average volume of 776,473. The stock has a market capitalization of $10.74 billion, a PE ratio of 57.48, a price-to-earnings-growth ratio of 3.53 and a beta of 1.14. The business's fifty day simple moving average is $199.57 and its 200-day simple moving average is $153.81. Powell Industries has a 52-week low of $54.75 and a 52-week high of $312.00.

Powell Industries (NASDAQ:POWL - Get Free Report) last announced its earnings results on Monday, May 4th. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.34 by ($0.09). The business had revenue of $296.62 million for the quarter, compared to analysts' expectations of $298.12 million. Powell Industries had a return on equity of 30.64% and a net margin of 16.82%.The business's revenue was up 6.5% on a year-over-year basis. During the same quarter last year, the business posted $3.81 earnings per share. Equities research analysts predict that Powell Industries will post 5.57 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. JPMorgan Chase & Co. assumed coverage on shares of Powell Industries in a research note on Monday, April 27th. They issued an "overweight" rating and a $310.00 target price for the company. Wall Street Zen lowered shares of Powell Industries from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings restated a "buy (b-)" rating on shares of Powell Industries in a research report on Friday, April 24th. Texas Capital upgraded shares of Powell Industries to a "strong-buy" rating in a research report on Friday, March 27th. Finally, Cantor Fitzgerald boosted their price objective on shares of Powell Industries from $142.33 to $160.33 and gave the stock a "neutral" rating in a research report on Thursday, February 5th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $184.25.

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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