Powell Industries (NASDAQ:POWL) Posts Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• Powell Industries reported quarterly EPS of $1.42, missing analysts’ consensus estimate by $0.05. The company posted a 28.61% return on equity and a 16.51% net margin.
• Shares rose $11.04 to $219.72 in Monday trading, while the stock’s consensus analyst rating remained “Buy” with an average price target of $236.67.
• Insiders sold 55,088 shares worth approximately $16.1 million over the past three months, while institutional investors owned 89.77% of the company’s stock.

Powell Industries (NASDAQ:POWL - Get Free Report) posted its quarterly earnings data on Monday. The industrial products company reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.47 by ($0.05), Zacks reports. Powell Industries had a return on equity of 28.61% and a net margin of 16.51%.

Powell Industries Price Performance

Shares of Powell Industries stock traded up $11.04 on Monday, hitting $219.72. 1,433,324 shares of the company's stock traded hands, compared to its average volume of 771,224. Powell Industries has a one year low of $69.00 and a one year high of $328.00. The stock has a market capitalization of $8.00 billion, a PE ratio of 43.00, a price-to-earnings-growth ratio of 2.73 and a beta of 1.13. The firm's 50-day moving average price is $263.99 and its two-hundred day moving average price is $224.08.

Powell Industries Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, May 20th were paid a $0.09 dividend. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $0.36 dividend on an annualized basis and a yield of 0.2%. Powell Industries's dividend payout ratio (DPR) is presently 7.05%.

Analyst Ratings Changes

Several research firms recently commented on POWL. Glj Research upgraded shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. Zacks Research lowered Powell Industries from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 11th. JPMorgan Chase & Co. boosted their price objective on Powell Industries from $310.00 to $360.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Weiss Ratings downgraded 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 lifted their target price on shares of Powell Industries from $160.00 to $320.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $236.67.

Insider Activity at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 2,500 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $323.69, for a total transaction of $809,225.00. Following the sale, the vice president owned 10,853 shares of the company's stock, valued at approximately $3,513,007.57. This trade represents a 18.72% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Brett Alan Cope sold 4,440 shares of Powell Industries stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $241.55, for a total value of $1,072,482.00. Following the transaction, the chief executive officer owned 517,233 shares in the company, valued at $124,937,631.15. This trade represents a 0.85% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 55,088 shares of company stock worth $16,070,066. 2.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Powell Industries

Several institutional investors have recently bought and sold shares of POWL. &PARTNERS acquired a new stake in shares of Powell Industries in the fourth quarter valued at approximately $232,000. Corient Private Wealth LLC acquired a new position in Powell Industries during the fourth quarter worth $230,000. Numerai GP LLC acquired a new position in Powell Industries during the fourth quarter worth $216,000. Vise Technologies Inc. bought a new stake in Powell Industries during the 4th quarter worth about $208,000. Finally, Cibc World Markets Corp bought a new stake in Powell Industries during the 4th quarter worth about $201,000. Institutional investors own 89.77% of the company's stock.

About Powell Industries

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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