Electrical energy control systems manufacturer Powell (NYSE:POWL) will be reporting earnings tomorrow after market close. Here’s what to expect.
Powell missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $275.1 million, up 31.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Powell a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Powell’s revenue to grow 19.9% year on year to $232.6 million, slowing from the 52.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.61 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Powell has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 12.9% on average.
Looking at Powell’s peers in the electrical systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 35.5%, beating analysts’ expectations by 14.3%, and OSI Systems reported revenues up 12.5%, topping estimates by 3.3%. LSI traded up 11.7% following the results while OSI Systems was also up 18.4%.
Read our full analysis of LSI’s results here and OSI Systems’s results here.
Investors in the electrical systems segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Powell is down 1.3% during the same time and is heading into earnings with an average analyst price target of $247.73 (compared to the current share price of $233.99).
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