NASDAQ$POWL

Powell Industries Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Powell Industries announced third quarter results, reporting decreased revenue and net income compared to the same quarter last year, but highlighted strong margins and cash flow.

Powell Industries reported a decrease in revenue to $118.1 million compared to $135.6 million in the third quarter of fiscal year 2019. Net income also decreased to $3.5 million, or $0.30 per diluted share, compared to $5.1 million, or $0.44 per diluted share, in the same period last year. The company's backlog as of June 30, 2020, was $532 million. Despite the challenges, the company highlighted strong margins and cash flow.

  • Revenues for the third quarter of fiscal 2020 were $118.1 million, a decrease from $135.6 million in the third quarter of fiscal 2019.
  • Net income for the third quarter of fiscal 2020 was $3.5 million, or $0.30 per diluted share, compared to $5.1 million, or $0.44 per diluted share, for the third quarter of fiscal 2019.
  • New orders placed during the third quarter of fiscal 2020 totaled $81 million, compared to $145 million in the third quarter of fiscal 2019.
  • The Company’s backlog as of June 30, 2020 was $532 million, compared to $407 million as of June 30, 2019.

Headline financials

Total Revenue

$118M

Previous: $136M-12.9%
EPS (adj)

$0.30

Previous: $0.39-23.1%
Order Backlog

$532M

Previous: $407M+30.7%
Capital Expenditures

-$4.27M

Previous: -$3.21M-33.1%
Free Cash Flow

-$793K

Previous: $1.88M-142.2%
Net Income

$3.48M

Previous: $5.09M-31.6%
Operating Income

$2.78M

Previous: $5.64M-50.6%
Gross Profit

$21.3M

Previous: $23.7M-10.0%
Cash & Equivalents

$156M

Previous: $71.9M+116.9%
Total Assets

$487M

Previous: $437M+11.5%
Stock-Based Comp

$441K

Previous: $330K+33.6%

Revenue & EPS history

Powell Industries · Revenue · Quarterly

$118M

Q3 2020-12.9%vs Q3 2019
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Powell Industries anticipates a more challenging commercial environment but expects a strong fiscal year 2020 financially, given its robust backlog position, year-to-date earnings, and operational cash flow.

Tailwinds

  • Solid operational momentum through the fiscal third quarter of 2020.
  • Orders and earnings per share at their highest levels through the first nine months of the year dating back to fiscal 2015.
  • Robust backlog position.
  • Strong year-to-date earnings.
  • Strong operational cash flow.

Headwinds

  • More challenging commercial environment with respect to broader industrial end markets.
  • Increased uncertainty across the geographies where they operate and compete.
  • Need to reduce workforce to align operating costs with the current market activity.
  • Global market uncertainty and challenges associated with the COVID-19 pandemic.
  • Lower sequential and year-over-year revenues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+3.0%

Avg return

Earnings day

+6.4%

Avg return

5 days after

+8.5%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+48.5%

Q1 2024

Best reaction

-18.3%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+19.1%+9.2%-3.5%
Q1 2026+16.3%+24.0%+6.7%
Q4 2025-11.2%-6.7%+3.5%
Q2 2025-8.1%-1.2%+0.4%
Q1 2025-6.5%-14.5%-33.5%
Q4 2024-9.4%+0.3%-15.8%
Q3 2024+33.3%+11.4%+18.2%
Q2 2024+13.6%+6.9%+37.6%
Q1 2024+48.5%+54.0%+132.0%
Q4 2023-8.7%-5.4%-7.7%
Q3 2023+40.7%+34.9%+38.2%
Q2 2023+22.0%+23.5%+43.6%
Q1 2023+16.6%+19.7%+17.0%
Q4 2022+23.0%+35.8%+35.1%
Q3 2022+3.8%+3.6%-5.8%
Q2 2022+16.5%+16.9%+39.2%
Q1 2022-17.8%-20.6%-24.4%
Q4 2021+11.7%+13.7%+18.9%
Q3 2021-4.1%-4.7%-11.3%
Q2 2021-0.0%+1.5%-4.3%
Q1 2021-2.7%-2.6%+6.4%
Q4 2020+7.0%+2.4%+19.0%
Q3 2020+1.7%+6.0%-1.1%
Q2 2020+15.5%+15.0%+27.2%
Q1 2020-8.4%-8.9%-24.5%
Q4 2019+14.1%+26.7%+22.3%
Q3 2019+8.5%+9.3%+4.9%
Q2 2019+14.2%+17.3%+18.6%
Q1 2019+5.8%+5.8%-1.8%
Q4 2018-6.5%-10.1%+2.6%
Q3 2018+8.3%+8.9%+3.4%
Q2 2018+14.9%+15.7%+16.9%
Q1 2018-1.7%-5.9%-7.0%
Q4 2017-2.5%-3.5%+1.4%
Q3 2017-4.2%-5.6%-18.3%
Q2 2017-1.3%-2.0%-3.5%
Q1 2017-9.0%-9.6%-15.8%
Q4 2016-10.2%-10.9%-11.7%
Q3 2016-1.7%+0.1%+9.1%
Q2 2016+3.7%
Q1 2016-8.8%
Q4 2015-18.3%
Q3 2015-7.8%
Q2 2015+5.8%
Q1 2015-10.2%
Q4 2014+10.8%
Q3 2014-8.3%
Q2 2014-1.3%
Q1 2014+0.2%
Q4 2013+0.0%
Q3 2013+1.5%
Q2 2013-3.6%
Q1 2013+16.1%
Q4 2012-0.2%
Q3 2012+7.5%
Q2 2012+8.0%
Q1 2011-10.9%
Q1 2012+3.2%
Q4 2011-6.5%
Q4 2009-6.5%
Q2 2011-6.5%
Q3 2011-2.4%
Q3 2010-2.4%
Q4 2010-2.4%
Q2 2010-4.9%

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