Powell Industries (POWL) stock plummeted 10.68% in Tuesday's trading session following the release of its third-quarter fiscal 2025 financial results. The significant drop suggests that the earnings report fell short of market expectations, despite showing growth in several key areas.

According to the company's announcement, Powell Industries reported Q3 revenue of $286 million and earnings per share (EPS) of $3.96. The company's gross profit reached $88 million, resulting in a gross margin of 30.7%. Net income for the quarter stood at $48 million. Notably, new orders for the quarter amounted to $362 million, indicating continued demand for Powell's products and services.

While these figures demonstrate growth, the sharp decline in stock price implies that investors may have been anticipating even stronger results or more optimistic future guidance. The market's negative reaction could also be attributed to concerns about sustainability of growth, potential headwinds in the industry, or other factors not immediately apparent in the reported financials. As always, investors are advised to conduct thorough research and consider multiple factors when making investment decisions.