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Powell Industries (POWL) Beats on Q4 Earnings & Revenues
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Powell Industries, Inc. (POWL - Free Report) reported adjusted earnings per share of 54 cents in the fourth quarter of fiscal 2016, outpacing the Zacks Consensus Estimate of 3 cents by a whopping 1700%. Reported earnings also surged 20% year over year.
The bottom-line improvement came on the back of positive operational trends, which was driven by project execution as well as manufacturing efficiencies.
In the quarter under review, total revenue of $129.8 million beat the Zacks Consensus Estimates of $120 million by 8.2%. Reported revenues were, however, down 20% from the year-ago figure of $162.3 million.
Operational Highlights
Total operating expenses in the fourth quarter of fiscal 2016 fell 8.9% year over year to $19.2 million primarily due to lower selling, general and administrative expenses.
Operating income decreased 27% to $6.4 million.
Interest expenses were up 8.8% to $37 million from $34 million a year ago.
Cash & cash equivalents were $97.7 million as of Sep 30, 2016, up from $43.6 million as of Sep 30, 2015.
Long-term debt was $2 million as of Sep 30, 2016, down from $2.4 million as of Sep 30, 2015.
Orders & Backlog
New orders placed during the fourth quarter of fiscal 2016 amounted to $111 million, up from $92 million in the prior-year quarter.
Powell Industries’ backlog as of Sep 30, 2016 stood at $291 million, down from $441 million in the year-ago period.
Price Movement
Powell Industries has largely outperformed the Zacks categorized Machinery - Electrical industry over the last 12 months. Share price of Powell Industries gained 78.1% while the industry improved 21.1% during the same time frame.
The company’s solid fundamentals, robust balance sheet and strong liquidity profile are driving its performance.
Zacks Rank & Key Picks
Powell Industries carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Industrial Products sector include ACCO Brands Corporation (ACCO - Free Report) , MRC Global Inc. (MRC - Free Report) and Lawson Products, Inc. .
ACCO Brands has seen two upward estimate revisions over the last 60 days for 2016. During the same time frame, its estimates increased from 82 cents to 85 cents, reflecting an upside of 3.7%. The stock sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
MRC Global, with a Zacks Rank #1, has seen six upward estimate revisions over the last 60 days for 2016. During this period, its estimates narrowed 20.6% from a loss of 63 cents to a loss of 50 cents.
Lawson Products, another Zacks Rank #1 stock, has seen one upward estimate revision over the last 60 days for 2016. During the same period, its estimates narrowed from a loss of 10 cents to earnings of 13 cents.
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Powell Industries (POWL) Beats on Q4 Earnings & Revenues
Powell Industries, Inc. (POWL - Free Report) reported adjusted earnings per share of 54 cents in the fourth quarter of fiscal 2016, outpacing the Zacks Consensus Estimate of 3 cents by a whopping 1700%. Reported earnings also surged 20% year over year.
The bottom-line improvement came on the back of positive operational trends, which was driven by project execution as well as manufacturing efficiencies.
Total Revenue
In the quarter under review, total revenue of $129.8 million beat the Zacks Consensus Estimates of $120 million by 8.2%. Reported revenues were, however, down 20% from the year-ago figure of $162.3 million.
Operational Highlights
Total operating expenses in the fourth quarter of fiscal 2016 fell 8.9% year over year to $19.2 million primarily due to lower selling, general and administrative expenses.
Operating income decreased 27% to $6.4 million.
Interest expenses were up 8.8% to $37 million from $34 million a year ago.
POWELL INDS Price, Consensus and EPS Surprise
POWELL INDS Price, Consensus and EPS Surprise | POWELL INDS Quote
Financial Update
Cash & cash equivalents were $97.7 million as of Sep 30, 2016, up from $43.6 million as of Sep 30, 2015.
Long-term debt was $2 million as of Sep 30, 2016, down from $2.4 million as of Sep 30, 2015.
Orders & Backlog
New orders placed during the fourth quarter of fiscal 2016 amounted to $111 million, up from $92 million in the prior-year quarter.
Powell Industries’ backlog as of Sep 30, 2016 stood at $291 million, down from $441 million in the year-ago period.
Price Movement
Powell Industries has largely outperformed the Zacks categorized Machinery - Electrical industry over the last 12 months. Share price of Powell Industries gained 78.1% while the industry improved 21.1% during the same time frame.
The company’s solid fundamentals, robust balance sheet and strong liquidity profile are driving its performance.
Zacks Rank & Key Picks
Powell Industries carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the Industrial Products sector include ACCO Brands Corporation (ACCO - Free Report) , MRC Global Inc. (MRC - Free Report) and Lawson Products, Inc. .
ACCO Brands has seen two upward estimate revisions over the last 60 days for 2016. During the same time frame, its estimates increased from 82 cents to 85 cents, reflecting an upside of 3.7%. The stock sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
MRC Global, with a Zacks Rank #1, has seen six upward estimate revisions over the last 60 days for 2016. During this period, its estimates narrowed 20.6% from a loss of 63 cents to a loss of 50 cents.
Lawson Products, another Zacks Rank #1 stock, has seen one upward estimate revision over the last 60 days for 2016. During the same period, its estimates narrowed from a loss of 10 cents to earnings of 13 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>