The chart below shows how POWL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, POWL sees a +1.46% change in stock price 10 days leading up to the earnings, and a +19.13% change 10 days following the report. On the earnings day itself, the stock moves by -1.67%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Year-over-Year Revenue Increase: Revenue growth of 24% year-over-year, reaching $241 million in the first quarter of fiscal 2025, compared to $194 million in the same period last year.
New Order Growth Surge: New order growth of 36% year-over-year, totaling $269 million in the first quarter, including a significant $75 million domestic LNG project.
Backlog Increase and Revenue Visibility: Backlog increased to $1.3 billion, up $48 million compared to the prior year and $14 million sequentially, providing strong revenue visibility.
Net Income Increase: Net income rose to $35 million, or $2.86 per diluted share, representing a 44% increase from $24 million, or $1.98 per diluted share, in the prior year.
R&D Investment Increase: R&D spending increased by 26% to $2.5 million, supporting ongoing product development and innovation initiatives.
Negative
Gross Profit Decline: Gross profit as a percentage of revenue was lower sequentially by 460 basis points due to the absence of strong project closeouts experienced in the fourth fiscal quarter.
Rising Operational Costs: Selling, general and administrative expenses increased by $1,100,000 compared to the same period a year ago, indicating rising operational costs.
Quarterly Operating Leverage Trends: The first fiscal quarter is historically the softest quarter across the fiscal year, leading to lower operating leverage compared to subsequent quarters.
Revenue Growth vs. Profitability Challenges: Despite a 24% increase in revenue, gross margin remained unchanged from the prior year, reflecting challenges in maintaining profitability amidst rising costs.
Margin Pressure Outlook: The company anticipates a challenging sequential comparison for margins due to seasonal factors, indicating potential pressure on future profitability.
Earnings call transcript: Powell Industries Q1 2025 beats expectations
POWL.O
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