Powell Industries, Inc. announced second quarter fiscal 2014 earnings of 58 cents per share, 26.6% lower than the Zacks Consensus Estimate of 79 cents. However, the bottom line was ahead of the year-ago earnings of 52 cents per share by 11.5%.
Total revenues in the fiscal second quarter were $162.3 million, up 11.1% from the prior-year quarter.
Total revenues in the reported quarter were however lower than the Zacks Consensus Estimate of $186 million by 12.7%.
Powell Industries’ selling, general & administrative (SG&A) expenses during the quarter were $22.1 million, up 5.2% from the comparable prior-year period. Research and development expenses followed the same trend, increasing 16.6% year over year to $2.15 million.
However, due to its cost-saving initiatives, total expenses in the reported quarter declined as a percentage of revenues by 70 basis points. Accordingly, operating income increased to $10.5 million from $6.29 million in the year-ago period.
New orders from continuing operations in the fiscal second quarter were $163 million versus $118 million in the second quarter of fiscal 2013.
Interest expenses in the reported quarter decreased 4.6% year over year to $41 million.
Long-term debt and capital lease obligations as of Mar 31, 2014, were $2.8 billion, lower than $3.2 billion as of Sep 30, 2013.
Capital expenditure of the company in the quarter under review was $2.7 million versus $19.9 million in the year-ago period.
Powell Industries expects fiscal 2014 revenues from continuing operations to range between $700 million and $750 million and earnings per share to come in a band of $2.85 to $3.35 per diluted share.
The guidance provided above excludes the discontinued operations of Transdyn, Inc. and the gain on sale of assets.
AO Smith Corp. (AOS - Free Report) reported earnings of 54 cents per share in the first quarter 2014, surpassing the Zacks Consensus Estimate by 1.9%.
Eaton Corporation plc.’s (ETN - Free Report) first quarter earnings per share of $1.01 surpassed the Zacks Consensus Estimate by a penny.
In spite of missing the Zacks Consensus Estimate for both revenues and earnings, Powell Industries recorded year-over-year gains in both these metrics. The improvement was primarily due to process enhancements and cost saving initiatives.
Total backlog at the end of Mar 31, 2014 was $452 million versus $439 million at the end of the prior-year quarter. Though marginal, it shows the company’s ability to win regular contracts.
Powell Industries currently has a Zacks Rank #3 (Hold). A better ranked stock in the same space is Plug Power Inc. (PLUG - Free Report) . Plug Power carries a Zacks Rank #2 (Buy).