The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Powell Industries met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Powell Industries reported revenue of $157.5 million. The five analysts polled by S&P Capital IQ expected revenue of $156.7 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $124.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.15. The five earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS were -$0.15 for Q1 against $0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.9%, 780 basis points worse than the prior-year quarter. Operating margin was -0.1%, 310 basis points worse than the prior-year quarter. Net margin was -1.1%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $156.6 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $658.1 million. The average EPS estimate is $1.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 110 members out of 123 rating the stock outperform, and 13 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Powell Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Powell Industries is hold, with an average price target of $39.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.