Powell Industries (NASDAQ:POWL) Releases Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Key Points

• Powell Industries reported quarterly EPS of $1.25, missing the consensus by $0.09, while registering a return on equity of 30.64% and a net margin of 16.82%.
• Shares fell $5.38 to $269.95 on heavy volume (1.45M vs. average 770.8K); the stock has a market cap of $9.83B, a P/E of 52.62, and a 1‑year range of $54.75–$290.40.
• Insiders sold roughly 248,688 shares (~$44.5M) in the last 90 days and own 2.20% of the company, while institutional investors hold about 89.77% and analysts’ consensus rating is Buy with an average target of $184.25.

Powell Industries (NASDAQ:POWL - Get Free Report) announced its quarterly earnings data on Monday. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.09), Zacks reports. Powell Industries had a return on equity of 30.64% and a net margin of 16.82%.

Powell Industries Price Performance

NASDAQ:POWL traded down $5.38 during trading hours on Monday, reaching $269.95. The company had a trading volume of 1,446,855 shares, compared to its average volume of 770,836. Powell Industries has a 1-year low of $54.75 and a 1-year high of $290.40. The firm has a market cap of $9.83 billion, a PE ratio of 52.62, a price-to-earnings-growth ratio of 3.53 and a beta of 1.14. The business's 50 day moving average price is $199.57 and its 200-day moving average price is $153.81.

Powell Industries Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Wednesday, February 18th were given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 0.1%. The ex-dividend date was Wednesday, February 18th. Powell Industries's dividend payout ratio (DPR) is currently 7.02%.

Analyst Upgrades and Downgrades

POWL has been the topic of several research reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of Powell Industries in a report on Friday, April 24th. Glj Research started coverage on shares of Powell Industries in a research note on Thursday, March 5th. They set a "hold" rating and a $150.00 price objective for the company. JPMorgan Chase & Co. initiated coverage on shares of Powell Industries in a report on Monday, April 27th. They issued an "overweight" rating and a $310.00 price objective on the stock. Zacks Research upgraded shares of Powell Industries from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 7th. Finally, Cantor Fitzgerald boosted their target price on shares of Powell Industries from $142.33 to $160.33 and gave the company a "neutral" rating in a research report on Thursday, February 5th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $184.25.

Insider Activity

In other news, insider Ping Ni sold 210 shares of Powell Industries stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $196.67, for a total transaction of $41,300.00. Following the completion of the transaction, the insider directly owned 6,069 shares of the company's stock, valued at $1,193,570. The trade was a 3.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of the business's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $233.96, for a total transaction of $1,038,782.40. Following the completion of the transaction, the chief executive officer owned 164,851 shares of the company's stock, valued at approximately $38,568,539.96. This represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 248,688 shares of company stock worth $44,535,053 over the last 90 days. Company insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of POWL. Royal Bank of Canada grew its position in shares of Powell Industries by 1.5% during the 1st quarter. Royal Bank of Canada now owns 30,830 shares of the industrial products company's stock valued at $5,251,000 after acquiring an additional 461 shares during the period. NewEdge Advisors LLC raised its holdings in Powell Industries by 7.9% in the 1st quarter. NewEdge Advisors LLC now owns 6,310 shares of the industrial products company's stock worth $1,075,000 after purchasing an additional 461 shares during the period. Jones Financial Companies Lllp boosted its position in Powell Industries by 1,221.0% during the first quarter. Jones Financial Companies Lllp now owns 1,387 shares of the industrial products company's stock worth $236,000 after purchasing an additional 1,282 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Powell Industries by 4.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 28,423 shares of the industrial products company's stock worth $4,841,000 after purchasing an additional 1,311 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in Powell Industries by 6.2% in the second quarter. JPMorgan Chase & Co. now owns 31,116 shares of the industrial products company's stock valued at $6,548,000 after purchasing an additional 1,822 shares during the period. Institutional investors and hedge funds own 89.77% of the company's stock.

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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