Powell Industries (NASDAQ:POWL) Shares Gap Down Following Weak Earnings

Powell Industries, Inc. (NASDAQ:POWL) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $219.72, but opened at $191.71. Powell Industries shares last traded at $205.2360, with a volume of 355,930 shares traded.

The industrial products company reported $1.42 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.07). The company had revenue of $311.74 million for the quarter, compared to analyst estimates of $316.70 million. Powell Industries had a return on equity of 28.61% and a net margin of 16.51%.The business’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same period last year, the business earned $3.96 EPS.

Powell Industries Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, August 19th will be paid a dividend of $0.09 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.36 annualized dividend and a yield of 0.2%. Powell Industries’s dividend payout ratio is currently 7.05%.

More Powell Industries News

Here are the key news stories impacting Powell Industries this week:

• Positive Sentiment: Powell reported fiscal Q3 revenue of approximately $311.7 million, up 8.9% year over year, while net income increased to $52.2 million, or $1.42 per diluted share, from $48.2 million, or $1.32 per share, a year earlier. Powell Industries Announces Third Quarter Fiscal 2026 Results
• Positive Sentiment: New orders surged 158% to $934 million, helped by three large projects, including a data-center order worth more than $400 million. Backlog reached a record $2.4 billion, up 69% year over year and 35% sequentially, supporting the company’s longer-term revenue outlook. Powell Industries Q3 Revenue Rises 9% To $312 Million
• Positive Sentiment: The board declared a quarterly dividend of $0.09 per share, payable September 16 to shareholders of record on August 19. Powell Industries Declares Quarterly Cash Dividend
• Neutral Sentiment: Powell maintained a solid operating profile, with a 16.5% net margin and $634 million in cash and short-term investments. However, the company’s forward execution and ability to convert its large backlog into revenue remain key investor considerations.
• Negative Sentiment: Adjusted earnings of $1.42 per share missed the $1.49 consensus estimate, while revenue of $311.7 million was below expectations of $316.7 million. The earnings shortfall is particularly notable because the stock trades at a high valuation, increasing sensitivity to quarterly misses. Powell Industries Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: Recent disclosed trading data showed substantial insider selling and no insider purchases over the past six months, a potential sentiment overhang for investors despite the strong backlog.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Zacks Research downgraded shares of Powell Industries from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Weiss Ratings cut shares of Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Cantor Fitzgerald raised their target price on Powell Industries from $160.00 to $320.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. JPMorgan Chase & Co. boosted their target price on Powell Industries from $310.00 to $360.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Finally, Glj Research raised Powell Industries from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Powell Industries currently has an average rating of “Buy” and a consensus price target of $236.67.

Insider Transactions at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 2,500 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $323.69, for a total value of $809,225.00. Following the sale, the vice president owned 10,853 shares in the company, valued at $3,513,007.57. This represents a 18.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Thomas W. Powell sold 33,958 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $294.49, for a total transaction of $10,000,291.42. Following the completion of the transaction, the insider directly owned 564,736 shares in the company, valued at approximately $166,309,104.64. The trade was a 5.67% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 55,088 shares of company stock valued at $16,070,066. Corporate insiders own 2.20% of the company’s stock.

Institutional Trading of Powell Industries

Several institutional investors and hedge funds have recently modified their holdings of the stock. Greenline Wealth Management LLC bought a new position in shares of Powell Industries in the fourth quarter valued at approximately $29,000. Hollencrest Capital Management purchased a new stake in Powell Industries in the 1st quarter valued at $54,000. MassMutual Private Wealth & Trust FSB raised its position in Powell Industries by 183.8% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 105 shares of the industrial products company’s stock valued at $30,000 after buying an additional 68 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its stake in Powell Industries by 126.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 113 shares of the industrial products company’s stock valued at $36,000 after acquiring an additional 63 shares in the last quarter. Finally, First Horizon Corp purchased a new position in Powell Industries during the 4th quarter worth $40,000. 89.77% of the stock is owned by hedge funds and other institutional investors.

Powell Industries Stock Performance

The stock has a market cap of $7.54 billion, a P/E ratio of 40.66, a price-to-earnings-growth ratio of 2.73 and a beta of 1.18. The company’s 50 day moving average price is $262.80 and its 200-day moving average price is $224.69.

Powell Industries Company Profile

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium?voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.