Powell Industries, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week, you might have seen that Powell Industries, Inc. (NASDAQ:POWL) released its second-quarter result to the market. The early response was not positive, with shares down 6.9% to US$178 in the past week. Revenues were US$279m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$3.81 were also better than expected, beating analyst predictions by 11%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Powell Industries' two analysts is for revenues of US$1.11b in 2025. This would reflect a modest 2.6% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$14.17, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.13b and earnings per share (EPS) of US$14.00 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Powell Industries

With no major changes to earnings forecasts, the consensus price target fell 5.9% to US$254, suggesting that the analysts might have previously been hoping for an earnings upgrade.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Powell Industries' revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Powell Industries.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Powell Industries' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You can also see our analysis of Powell Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.