Powell Industries, Inc.’s POWL fourth-quarter fiscal 2024 (ended September 2024) adjusted earnings of $3.77 per share surpassed the Zacks Consensus Estimate of $3.49. The bottom line increased 74% year over year. Results benefited primarily from higher revenues generated in the quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Powell’s total revenues of $275.1 million missed the consensus estimate of $277 million. The top line increased 32% year over year. The year-over-year increase was primarily driven by strength across all sectors, including petrochemical, oil & gas and commercial & other industrial sectors.
In fiscal 2024, its revenues totaled $1 billion, reflecting an increase of 45% year over year. Adjusted earnings were $12.29 per share, up 175% year over year.
Inside the Headlines
In the fiscal fourth quarter, it generated revenues of $50.4 million from the petrochemical sector, up 112% year over year. Revenues from the oil & gas sector amounted to $115.4 million, up 23% year over year. The commercial & other industrial sector’s revenues increased 66% to $48.3 million.
In the fiscal fourth quarter, new orders totaled $267 million compared with $171 million in the year-ago quarter. Exiting the quarter, its backlog totaled $1.3 billion, relatively flat on a sequential as well as year-over-year basis.
Powell Industries, Inc. Price, Consensus and EPS Surprise
Powell Industries, Inc. price-consensus-eps-surprise-chart | Powell Industries, Inc. Quote
Margin Profile of POWL
In the fiscal fourth quarter, Powell’s cost of sales increased 24.2% year over year to $194.6 million. Gross profit increased 54.6% year over year to $80.4 million and the margin increased 430 basis points (bps) to 29.2%. Selling, general and administrative expenses were $21.6 million, up 5.9% year over year.
Operating income increased 89% year over year to $56.1 million. The operating margin was 20.4%, up 610 bps year over year.
Powell’s Balance Sheet and Cash Flow
Exiting fiscal 2024, Powell had cash equivalents and short-term investments of $358.4 million compared with $279 million at the end of fiscal 2023. Current liabilities were $428 million compared with $395.7 million at the end of fiscal 2023.
Stockholders’ equity totaled $483.1 million. In fiscal 2024, capital expenditure totaled $12 million, up 53.8% year over year.
In the same period, the company used $12.7 million for distributing dividends, relatively stable on a year-over-year basis.
2025 Guidance
Powell expects to witness continued strength across most of the end markets across all geographies. Given the company’s robust backlog, solid liquidity and a strong balance sheet, it looks forward to witnessing strong financial results in fiscal 2025 (ending September 2025).
Zacks Rank & Stocks to Consider
POWL currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:
Kadant Inc. KAI presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.
Atmus Filtration Technologies Inc. ATMU presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.8%, on average. The consensus estimate for ATMU’s 2024 earnings has increased 1.3% in the past 60 days.
Zurn Elkay Water Solutions Corporation ZWS presently carries a Zacks Rank of 2. ZWS delivered a trailing four-quarter earnings surprise of 8.5%, on average. The Zacks Consensus Estimate for Zurn Elkay’s 2024 earnings has increased 2.5% in the past 60 days.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpKadant Inc (KAI) : Free Stock Analysis Report
Powell Industries, Inc. (POWL) : Free Stock Analysis Report
Zurn Elkay Water Solutions Cor (ZWS) : Free Stock Analysis Report
Atmus Filtration Technologies Inc. (ATMU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
