Powell Industries Inc.

Powell Industries Inc. (POWL) reported strong first-quarter results in February that were ahead of expectations, giving the company's share price a nice boost to a key level of resistance.

Company Description

Powell Industries, Inc. designs and manufactures equipment and systems for the management and control of electrical energy in the United States and internationally. The company was founded in 1947 and has a market cap of $386 million.

Powell's share price has been steadily advancing since late November on positive earnings and bullish projections. The company's first-quarter results, reported on Feb 9, were ahead of expectations.

First-Quarter Results

Revenue for the quarter was up 16% from last year to $147.1 million. Net income more than doubled, coming in at $7.9 million compared to $3.6 million last year. This produced earnings of 68 cents per share, 8 cents ahead of the consensus estimate.

Consistent Results

Powell has produced consistent results over the last year in a tough market, having beat the consensus in each of the last four quarters by an average of 13 cents, or 28%.

Substantial Backlog

The company noted that it had accumulated a nice backlog of orders, totaling $509 million, with first-quarter new orders increasing to $172 million from $136 million last year.

Estimates Look Strong

The analyst community is bullish on Powell, with the next-year estimate up 13 cents in the last 30 days to $3.17 per share, a 14% earnings growth projection.

The Chart

Shares of Powell have been on a nice rally since bottoming out with the overall market in late November. This stock is currently pressuring a key level of resistance just above the $34 mark, take a look below.

Read the full analyst report on POWL