In any earnings season, there will be at least a few companies hyping their performance in the reported period. In the case of Powell Industries (POWL 3.80%) on Wednesday, management's pronouncement of a "strong year of fiscal performance" was entirely accurate. Its second-quarter earnings, released after market hours Tuesday, were excellent, and the market responded accordingly.
Thumping beats on both the top and bottom lines
Powell's fiscal second quarter of 2024 saw the company book $255 million in revenue for very sturdy (49%) year-over-year growth. Net income according to GAAP standards saw a more dramatic improvement -- it grew by nearly fourfold to almost $33.5 million ($2.75 per share).
Both figures were so high above the consensus analyst estimates, they might as well be floating in space. On average, pundits following Powell stock were modeling only $201 million and change on the top line, and $1.78 per share for net income.
Powell, which supplies components for utilities and other industrial clients, quoted its CEO Brett Cope as saying that his company "delivered solid second quarter results supported by continued growth within our industrial end markets as well as strong performances from both our electric utility and commercial and other industrial markets."
Continued growth on tap, says management
Powell did not proffer very specific guidance for the remainder of this year. Management did say that it's expecting fiscal 2024 to continue being lucrative for the company, given the "favorable dynamics and activity levels" that should keep the growth engine running. More encouragingly, the company expects this to continue into fiscal 2025 as well.
