Electrical energy control systems manufacturer Powell (NYSE: POWL) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Powell beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $241.4 million, up 24.4% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is Powell a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Powell’s revenue to grow 10.8% year on year to $282.7 million, slowing from the 48.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Powell has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 12.3% on average.
Looking at Powell’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 2%, and Vertiv reported revenues up 24.2%, topping estimates by 5.2%. Allegion traded up 7.9% following the results while Vertiv was also up 16.8%.
Read our full analysis of Allegion’s results here and Vertiv’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 13% on average over the last month. Powell is up 14.5% during the same time and is heading into earnings with an average analyst price target of $269.50 (compared to the current share price of $193.22).
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