NASDAQ$POWL

Powell Industries Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a net loss for the third quarter of fiscal year 2021, with revenues largely in-line with the prior quarter and comparable period in the prior year, and gross profit improved sequentially by 40 basis points.

Powell Industries reported a net loss of $2.0 million, or $0.17 loss per diluted share, for the third quarter of fiscal 2021. Revenues totaled $115.8 million, and backlog as of June 30, 2021, totaled $426 million. The company saw $103 million in new orders during the quarter.

  • Revenues totaled $116 million.
  • Backlog as of June 30, 2021 totaled $426 million.
  • Net Loss was $2.0 million, or a $0.17 loss per diluted share.
  • Cash and short-term investments as of June 30, 2021 totaled $129 million.

Headline financials

Total Revenue

$116M

Previous: $118M-1.9%
EPS (adj)

-$0.17

Previous: $0.30-156.7%
Order Backlog

$426M

Previous: $532M-19.9%
Capital Expenditures

-$2.44M

Previous: -$4.27M+42.9%
Free Cash Flow

-$4.48M

Previous: -$793K-465.1%
Net Income

-$2.04M

Previous: $3.48M-158.6%
Operating Income

-$1.36M

Previous: $2.78M-148.8%
Gross Profit

$17.2M

Previous: $21.3M-19.6%
Cash & Equivalents

$109M

Previous: $156M-30.3%
Total Assets

$422M

Previous: $487M-13.4%
Stock-Based Comp

$388K

Previous: $441K-12.0%

Revenue & EPS history

Powell Industries · Revenue · Quarterly

$116M

Q3 2021-1.9%vs Q3 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The $103 million of new orders during the third quarter marked a strong sequential improvement from the prior period. However, considering the lead time of our projects, the current revenue levels and overall operating activity prevent us from fully leveraging our overhead. This, in addition to the recent inflationary impact on commodities such as steel and copper, are creating headwinds to our margin profile.

Tailwinds

  • Project execution and customer fulfillment
  • Diligent cost and cash management
  • Continue to build working capital as we execute on our current project mix
  • Cautiously optimistic that the commercial activity will gradually improve.
  • Balance sheet and liquidity position remain a core strength of Powell and provide the flexibility to navigate through these industry cycles, while also providing an element of optionality.

Headwinds

  • Current revenue levels and overall operating activity prevent us from fully leveraging our overhead.
  • Recent inflationary impact on commodities such as steel and copper, are creating headwinds to our margin profile.
  • Manage through this cycle
  • Main focus remains on project execution and customer fulfillment
  • Diligent cost and cash management

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 2021

Historical avgQ3 2021

+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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