Powell Industries (NASDAQ:POWL) Issues Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Powell Industries (NASDAQ:POWL) released its quarterly earnings data on Monday. The industrial products company reported $1.42 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.07), Zacks reports. Powell Industries had a net margin of 16.51% and a return on equity of 28.61%. The company had revenue of $311.74 million for the quarter, compared to analyst estimates of $316.70 million. During the same period in the previous year, the firm posted $3.96 earnings per share. The firm’s revenue for the quarter was up 8.9% compared to the same quarter last year.

Powell Industries Stock Performance

Shares of POWL stock opened at $219.72 on Tuesday. The stock’s fifty day moving average is $262.80 and its 200-day moving average is $224.69. The stock has a market capitalization of $8.00 billion, a PE ratio of 43.00, a PEG ratio of 2.73 and a beta of 1.18. Powell Industries has a 52 week low of $69.00 and a 52 week high of $328.00.

Powell Industries Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.36 dividend on an annualized basis and a yield of 0.2%. Powell Industries’s payout ratio is currently 7.05%.

Key Stories Impacting Powell Industries

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

• Positive Sentiment: Fiscal third-quarter revenue rose 8.9% year over year to $311.74 million, while net income increased to $52.2 million, or $1.42 per diluted share, from $48.2 million, or $1.32 per share, a year earlier. Powell Industries Q3 Revenue Rises 9% to $312 Million
• Positive Sentiment: New orders surged 158% to $934 million, including a data-center project valued above $400 million, while backlog reached $2.4 billion—up 69% year over year and 35% sequentially. The figures reinforce demand tied to data centers, LNG and industrial infrastructure.
• Positive Sentiment: Powell declared a quarterly dividend of $0.09 per share, payable September 16 to shareholders of record August 19. The distribution signals continued cash returns, although its roughly 0.2% yield is modest. Powell Industries Declares Quarterly Cash Dividend
• Neutral Sentiment: Cash and short-term investments totaled $634 million, supporting financial flexibility. However, gross margin was essentially flat at 30.6%, versus 30.7% a year earlier.
• Negative Sentiment: Adjusted earnings of $1.42 per share missed consensus estimates of approximately $1.46–$1.49, and revenue of $311.74 million was below the $316.70 million expectation. The earnings miss is the clearest near-term reason for the stock’s decline. Powell Industries Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: Reported insider activity is heavily weighted toward selling, with no open-market purchases and 64 sales over the past six months. This may add caution at a valuation near 43 times earnings, despite the strong backlog.

Insider Buying and Selling

In related news, VP William Marshall Mauney, Jr. sold 2,500 shares of Powell Industries stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $323.69, for a total value of $809,225.00. Following the completion of the transaction, the vice president directly owned 10,853 shares of the company’s stock, valued at $3,513,007.57. The trade was a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Brett Alan Cope sold 4,440 shares of the company’s stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $241.55, for a total transaction of $1,072,482.00. Following the transaction, the chief executive officer owned 517,233 shares in the company, valued at approximately $124,937,631.15. This trade represents a 0.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 55,088 shares of company stock valued at $16,070,066 in the last 90 days. 2.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Powell Industries

Several large investors have recently made changes to their positions in the company. Kestra Advisory Services LLC bought a new stake in Powell Industries in the fourth quarter valued at about $162,000. Cibc World Markets Corp acquired a new position in Powell Industries in the fourth quarter valued at about $201,000. Vise Technologies Inc. bought a new position in Powell Industries during the fourth quarter worth about $208,000. Wexford Capital LP bought a new position in Powell Industries during the third quarter worth about $101,000. Finally, iSAM Funds UK Ltd acquired a new position in shares of Powell Industries during the 3rd quarter worth about $87,000. Institutional investors and hedge funds own 89.77% of the company’s stock.

Analyst Upgrades and Downgrades

POWL has been the subject of several analyst reports. JPMorgan Chase & Co. raised their target price on Powell Industries from $310.00 to $360.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Glj Research raised Powell Industries from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 14th. Cantor Fitzgerald upped their price target on Powell Industries from $160.00 to $320.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Weiss Ratings lowered Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. Finally, Zacks Research cut Powell Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. Two investment 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 company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $236.67.

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.